Ampco Pittsburgh Corp (NYSE: AP)

Ampco-Pittsburgh Corporation manufactures and sells highly engineered, high performance specialty metal products and customized equipment utilized by industry throughout the world.

The company generates revenue through the sale of forged hardened steel rolls, cast rolls, forged engineered products, custom engineered finned tube heat exchange coils, air handling systems, and centrifugal pumps to sophisticated commercial and industrial users worldwide.

The company operates through the following segments: Forged and Cast Engineered Products (FCEP) and Air and Liquid Processing (ALP).

• FCEP: This segment produces forged hardened steel rolls used primarily in hot and cold rolling mills by producers of steel, aluminum and other metals, cast rolls used mainly in hot strip mills, medium/heavy section mills, roughing mills, and plate mills, and forged engineered products sold to customers in the steel distribution market, oil and gas industry, and the aluminum and plastic extrusion industries.

• ALP: This segment includes Aerofin, Buffalo Air Handling and Buffalo Pumps divisions, producing custom engineered finned tube heat exchange coils for original equipment manufacturers and commercial, nuclear power generation and industrial manufacturing, large custom designed air handling systems for institutional, such as hospital and university, pharmaceutical and general industrial building markets, and centrifugal pumps for fossil fueled power generation, marine defense and industrial refrigeration industries.

Ampco-Pittsburgh Corporation believes its subsidiaries are significant participants in the niche markets they serve, facing competition based on quality, service, price, and delivery, with significant barriers to entry that make it challenging for new competitors to enter the markets served by the company.

The company serves steel producers, aluminum and plastic extrusion companies, oil and gas firms, power generation utilities, the U. S. military, hospitals, universities, pharmaceutical companies, industrial building owners, fossil fueled power generators, marine defense contractors, and industrial refrigeration users. While no specific customer names are disclosed, individual customers have represented up to 12% of a segment’s net sales in recent years.