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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.
Revenue by Segment
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
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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