ParkOhio Announces Second Quarter 2020 Results

About this update from Park-ohio Holdings Corp.

[{"type":"text","content":" CLEVELAND, OHIO--(BUSINESS WIRE)--\nPark-Ohio Holdings Corp. (NASDAQ: PKOH) today announced its results for the second quarter of 2020.\n\n\nSECOND QUARTER CONSOLIDATED RESULTS\n\n\nNet sales were $228.3 million in the second quarter of 2020 compared to net sales of $415.3 million in the second quarter of 2019. Net loss attributable to ParkOhio common shareholders was $(16.6) million, or $(1.38) per diluted share, in the second quarter of 2020, compared to net income of $7.6 million, or $0.61 per diluted share, in the second quarter of 2019. On an adjusted basis, net loss attributable to ParkOhio common shareholders was $(1.17) per diluted share in the 2020 period compared to net income of $1.07 per diluted share in the 2019 period. Please refer to the table that follows for a reconciliation of net income to adjusted earnings.\n\n\nThe COVID-19 pandemic significantly weakened customer demand across most of the Company’s key end markets in each of our business segments. Most of our operations were either idled or significantly downsized beginning in late March of the first quarter and continued in that state through the end of May. We reacted to this challenging environment caused by the pandemic by taking actions to reduce costs and aggressively manage working capital and capital spending. These actions included the consolidation or permanent downsizing of several facilities; permanent headcount reductions and temporary layoffs affecting over 50% of our global workforce; salaried employee and Board compensation reductions; discretionary spending cuts; and the elimination of all non-critical capital spending. We also temporarily suspended our quarterly shareholder dividend to further preserve our liquidity.\n\n\nDuring the month of June, each of our operations showed significant improvement in both sales and earnings as demand from the majority of our key end markets began to recover globally. Consolidated sales in June improved approximately 67% over the average of April and May’s consolidated sales and represented 77% of prior year June sales. In addition, many of our furloughed employees have returned to work as demand has increased.\n\n\nAt June 30, 2020, we had liquidity of $196.9 million, including cash on-hand of $51.9 million and $145.0 million of unused borrowing capacity under our various banking arrangements. During t...

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