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Sep 30, 2021
Park-Ohio Q3 2021 Earnings Report
Park-Ohio experienced a mixed Q3 2021, with overall revenue increasing but profitability impacted by challenges in the Assembly Components segment.
Key Takeaways
Park-Ohio's Q3 2021 results showed a revenue increase of 5% to $358.5 million, but a GAAP EPS loss of $(0.60) and an adjusted EPS loss of $(0.32). The Assembly Components segment was significantly impacted by automotive production volatility and rising costs. The company is taking actions to improve performance.
Revenue increased by 5% to $358.5 million compared to Q3 2020.
GAAP EPS loss was $(0.60), and adjusted EPS loss was $(0.32).
Supply Technologies revenue increased by 17% due to strong customer demand.
Assembly Components was significantly affected by semiconductor shortages and rising costs, leading to an operating loss.
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
For the year ending December 31, 2021, Park-Ohio expects organic sales growth of 10% to 12%, total capital expenditures between $28 million and $32 million, an EBITDA margin reduced to approximately 5%, and cash utilization of $25 million to $30 million for free cash flow purposes.
Positive Outlook
- Expect organic sales growth to be 10% to 12%
- Total capital expenditures to be within $28 million to $32 million
- Focus on pricing initiatives to aggressively respond to the higher product costs
- Automating certain manufacturing processes to combat labor shortages
- Implementing changes to improve plant productivity
Challenges Ahead
- EBITDA margin for 2021 to be reduced to approximately 5%
- Impacts of the ongoing global micro-chip shortage
- Increasing raw material and supply chain costs
- Expect to utilize cash of $25 million to $30 million in 2021 for free cash flow purposes
- Assembly Components, which services mainly the automotive end market, was particularly challenged
Revenue & Expenses
Visualization of income flow from segment revenue to net income