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Mar 31, 2021
Park-Ohio Q1 2021 Earnings Report
Park-Ohio's first quarter results reflected a strong rebound to pre-pandemic levels, driven by robust demand and strategic acquisitions.
Key Takeaways
Park-Ohio Holdings Corp. announced its first quarter 2021 results, with revenue of $359.6 million. GAAP EPS was $0.45, and adjusted EPS was $0.53. The company generated $9.9 million in operating cash flows and $3.3 million in free cash flow. They also completed the acquisition of NYK Component Solutions.
Revenue reached $359.6 million.
GAAP EPS was $0.45; Adjusted EPS was $0.53.
Operating cash flows amounted to $9.9 million.
Liquidity increased to $264.4 million at the end of the quarter.
Park-Ohio
Park-Ohio
Park-Ohio Revenue by Segment
Revenue by Segment
Supply Technologies Revenue
CapyFin.comAssembly Components Revenue
CapyFin.comEngineered Products Revenue
CapyFin.com Forward Guidance
The business rebounded strongly, returning to pre-pandemic levels. Robust demand in most markets accelerated throughout the quarter, and while the COVID-19 pandemic continues to provide an uncertain backdrop to the economy, the company anticipates improvement throughout the year.
Positive Outlook
- Strong customer demand is expected to continue throughout 2021.
- The majority of end markets are expected to fully recover from the global pandemic.
- New orders in the industrial equipment business increased 38% over fourth quarter 2020 levels.
- The acquisition of NYK Component Solutions is expected to be immediately accretive to earnings.
- Expect annual sales from NYK to exceed $10 million.
Challenges Ahead
- The COVID-19 pandemic continues to provide an uncertain backdrop to the economy.
- Sales levels in Assembly Components were negatively impacted by customer plant shut-downs due to weather-related issues and demand volatility caused by semiconductor chip shortages.
- The global semiconductor chip shortage is expected to continue, with an estimated sales impact of approximately $10 million in the second quarter.
- The Engineered Products segment continued to be affected by the slow recovery in key end markets.
- The company incurred an operating loss of $1.3 million in the Engineered Products segment due to lower sales levels and one-time charges to consolidate certain facilities.
Revenue & Expenses
Visualization of income flow from segment revenue to net income