Ampco-Pittsburgh Corporation

Good day and welcome to the AMCO Pittsburgh Corporation third quarter 2021 earnings results conference call. Today, all participants will be in a listen-only mode. Should you need assistance during today's call, please signal for a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star, then two. Additionally, during the Q&A, please limit your initial questions to one plus one follow-up. If you do have additional questions, please re-enter the question queue. Please note that today's event is being recorded. I would now like to turn the conference over to Melanie Sproulson, Director of Investor Relations. Please go ahead.

Thank you, Chris, and good morning to everyone joining us on today's third quarter 2021 conference call. Joining me today are Brett McBrayer, our Chief Executive Officer, and Mike McCauley, Senior Vice President, Chief Financial Officer and Treasurer. Also joining us on the call today are Sam Lyon, President of Union Electric Steel Corporation, and Terry Kenney, President of Air and Liquid Systems Corporation. Before we begin, I would like to remind everyone that participants on this call may make statements or comments that are forward-looking and may include financial projections or other statements of the corporation's plans, objectives, expectations, or intentions. These matters involve certain risks and uncertainties, many of which are outside of the corporation's control. The corporation's actual results may differ significantly from those projected or suggested in any forward-looking statement due to various factors, including those discussed in the corporation's most recently filed Form 10-K and subsequent filings with the Securities and Exchange Commission. We do not undertake any obligation to update or otherwise release publicly any revision to our forward-looking statement. A replay of this call will be posted on our website later today. To access the earnings release or the webcast replay, please consult the Investors section of our website at amcopgh.com. With that, I'll turn the call over to Brett McBrayer, AMCO Pittsburgh CEO.

Thank you, Melanie. Good morning, and thank you for joining our call. As shared in today's press release, AMCO Pittsburgh recorded our first quarterly loss since the third quarter of 2019. This loss is a net result of our planned extended equipment outages as well as two unplanned outages due to equipment failures during the summer and under recovery of inflationary costs in our forged and cast engineered product segment. To address these continuing cost pressures on our business, the forged and cast engineered product segment has commenced price increases across all products. The broad range of increases is necessary to address the varying impact of input costs in our North American, European, and Asian operations. The extended maintenance outages taken during the quarter have us well positioned to meet the growing demand for our products. Our backlog has increased 16% since Q2 in the Forged and Cashed Injured product segment, and our backlog in the Air and Liquid Systems segment remains strong. Although we have been challenged with supply chain issues and vendor labor shortages, our capital improvement work is well underway, with targeted completion in the first half of 2023. Finalizing this work will significantly improve our cost structure and facilitate substantial top-line growth for our businesses. As always, safety and health of our employees and being good stewards in the communities where we operate continue to be priorities as we work to improve the performance of Amco Pittsburgh. The efforts of our employees to improve in these areas continues to be impressive. As we look to the fourth quarter, we will continue to see headwinds from an inflationary cost standpoint. Our price increases during the quarter will not deliver their full effect until the first quarter of 2022. With a growing backlog and the strong demand for our products, we are optimistic as we move into 2022 and beyond. For further comments on our businesses, I'd now like Terry Kinney, President of Air and Liquid Systems, and Sam Lyon, President of Union Electric Steel, to share some of the highlights in our segment's performance. Terry.