Business
ParkOhio Announces Third Quarter 2020 Results; Declares Quarterly Dividend
Sequential Revenue Growth of 49% GAAP EPS of $0.44; Adjusted EPS of $0.52 Operating Cash Flow of $23 million; Free Cash Flow of $18 million Liquidity
About this update from Park-ohio Holdings Corp.
[{"type":"text","content":"\n\nSequential Revenue Growth of 49%\n\n\nGAAP EPS of $0.44; Adjusted EPS of $0.52\n\n\nOperating Cash Flow of $23 million; Free Cash Flow of $18 million\n\n\nLiquidity increased to $243 million \n\n\nDeclares Quarterly Cash Dividend of $0.125\n\n\n CLEVELAND, OHIO--(BUSINESS WIRE)--\nPark-Ohio Holdings Corp. (NASDAQ: PKOH) today announced its results for the third quarter of 2020.\n\nMatthew V. Crawford, Chairman, Chief Executive Officer and President, stated, “Our third quarter results reflect a substantial increase in both revenues and profitability sequentially from the second quarter led by improvements in each segment. These improvements are beginning to demonstrate the value of a more focused business that will enjoy greater operating leverage and increased long-term competitiveness as volumes return and new business is added.”\n\nTHIRD QUARTER CONSOLIDATED RESULTS\n\nNet sales were $340.2 million in the third quarter of 2020 compared to net sales of $403.4 million in the third quarter of 2019. Net income attributable to ParkOhio common shareholders was $5.3 million, or $0.44 per diluted share, in the third quarter of 2020, compared to net income of $12.2 million, or $0.99 per diluted share, in the third quarter of 2019. On an adjusted basis, net income attributable to ParkOhio common shareholders was $0.52 per diluted share in the 2020 quarter compared to net income of $1.01 per diluted share in the 2019 quarter. Please refer to the table that follows for a reconciliation of net income to adjusted earnings.\n\nNet sales improved during the third quarter as a result of strong customer demand in many end markets, resulting in a net sales increase of 49% compared to second quarter 2020. Sales in certain end markets, such as Automotive, Semiconductor, Medical, Lawn and Garden, and Power Sports, were in excess of 90% of prior year levels, while other end markets, such as Commercial and Military Aerospace, Oil and Gas, and Steel, have been slower to recover from the effects of the COVID-19 pandemic. During the first half of 2020, the Company reacted to the significant drop in demand triggered by the pandemic, taking actions to aggressively reduce costs and manage both working capital and capital spending. These actions included the consolidation or permanent downsizing of several facilities; permanent headcount reductions and ...