Ampco-Pittsburgh Corporation

Welcome to the ANCO Pittsburgh Corporation Second Quarter 2022 Earnings Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal conference presence 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 can press star then 1 on your telephone keypad. To withdraw a question, please press star then 2. Please note this event is being recorded. I'm honored to turn the conference over to Michael McCauley, Chief Financial Officer. Please go ahead.

Thank you, Anthony, and good morning to everyone joining us on today's second quarter 2022 conference call. Joining me today are Brett McBrayer, our Chief Executive Officer. Also joining us on the call today are Sam Lyon, President of Union Electric Steel Corporation, and Dave Anderson, 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 the corporation's control. The corporation's actual results may differ significantly from those projected or suggested in any forward-looking statements due to various risk 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 statements. 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 investor section of our website at amcopgh.com. With that, I will turn the call over to Brett McBrayer, Amco Pittsburgh's CEO. Brett?

Thank you, Mike. Good morning. As shared in our recent press release, Amco Pittsburgh recorded a net income of $0.4 million in our second quarter of 2022. Although we again recorded a positive net earnings quarter, we were negatively impacted by the lag in product surcharge coverage in our forage and cast in Europe product segment, as well as supply chain delays in our air and liquid systems segment. We have recently seen commodity prices decline, which will help in cost recovery. However, the volatility of energy prices in Europe continues to be a headwind for our operations, customers, and customers in markets. Despite these challenges, net sales improved approximately 9% from the prior quarter, and our backlog has grown 7% sequentially and 19% year-to-date. The first installation of new capital equipment in our Forging Cast Engineer product segment is on track and will occur in the fourth quarter of this year. Completion of our North American fixed asset transformation will conclude in 2023. From a safety and health perspective, We again saw positive progress in our injury rates during the quarter. The health and safety of our team members will remain a priority as we drive improvements in our businesses. I will now turn the call over to David Anderson, President of Air and Liquid Systems, for comments on this segment's performance.