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Sep 30, 2023
Park-Ohio Q3 2023 Earnings Report
Park-Ohio reported strong financial results for the third quarter of 2023, driven by a diversified business model and operational improvements.
Key Takeaways
Park-Ohio announced a 9% increase in net sales, reaching $419 million, and a 71% increase in GAAP EPS to $0.99. The company's gross margin improved by 300 basis points to 16.7%, and operating income increased to $27 million. Strong demand across most end markets, excluding those affected by UAW strikes, contributed to the positive results.
Net sales increased by 9% to $419 million compared to Q3 2022.
GAAP EPS from continuing operations rose by 71% year-over-year to $0.99 per diluted share.
Gross margin improved by 300 basis points year-over-year to 16.7%.
Operating income improved to $27 million from $12 million in Q3 2022.
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
Park-Ohio expects revenues from continuing operations to increase 10-15% year-over-year and anticipates improvement in adjusted operating income, EBITDA, free cash flow, and adjusted EPS for 2023. The UAW strike is expected to negatively impact fourth quarter revenues by $25 to $30 million per month.
Positive Outlook
- Revenues from continuing operations expected to increase 10-15% year-over-year.
- Expect year-over-year improvement in adjusted operating income.
- EBITDA is expected to improve year-over-year.
- Free cash flow is projected to increase in 2023.
- Adjusted EPS is also expected to improve in 2023.
Challenges Ahead
- Fourth quarter revenues will be negatively impacted by the UAW strike.
- OEM plants affected by the strike will reduce monthly revenue by approximately $25 to $30 million.
- The full impact of the strike on fourth quarter revenues is difficult to estimate due to production ramp-up uncertainties.
- UAW strike affects customers across Assembly Components and Supply Technologies segments.
- Backlogs remain above historical levels, and demand is stable across most end markets with the notable exception of customers affected by UAW strikes, which will provide a headwind during the fourth quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income