Park-Ohio Holdings Corp. (PKOH) Bundle
A Brief History of Park-Ohio Holdings Corp.
Company Overview
Park-Ohio Holdings Corp. is a diversified international company that provides supply chain management outsourcing services, capital equipment, and manufactured components. The company operates through three main segments: Supply Technologies, Assembly Components, and Engineered Products.
Financial Performance in 2024
As of September 30, 2024, Park-Ohio reported net sales of $1,267.8 million, a slight decrease of 0.2% compared to $1,270.4 million in the same period of 2023. The cost of sales also decreased to $1,050.9 million from $1,063.1 million, resulting in a gross margin improvement to 17.1% from 16.3%.
| Metric | 2024 (9 months) | 2023 (9 months) | % Change |
|---|---|---|---|
| Net Sales | $1,267.8 million | $1,270.4 million | -0.2% |
| Cost of Sales | $1,050.9 million | $1,063.1 million | -1.1% |
| Gross Margin | 17.1% | 16.3% | +0.8% |
| SG&A Expenses | $142.3 million | $135.1 million | +5.3% |
Segment Performance
In the three months ended September 30, 2024, the Supply Technologies segment reported net sales of $194.5 million, while Assembly Components generated $98.7 million. The Engineered Products segment saw sales of $124.4 million.
| Segment | Net Sales (2024 Q3) | Net Sales (2023 Q3) | % Change |
|---|---|---|---|
| Supply Technologies | $194.5 million | $192.8 million | +0.9% |
| Assembly Components | $98.7 million | $108.4 million | -9.0% |
| Engineered Products | $124.4 million | $117.6 million | +5.8% |
Income Metrics
Income from continuing operations for the nine months ended September 30, 2024, was reported at $34.7 million, an increase from $26.4 million in 2023. This reflects an effective income tax rate of 13% for the 2024 period, down from 24% in the prior year.
| Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Income from Continuing Operations | $34.7 million | $26.4 million |
| Effective Tax Rate | 13% | 24% |
Cash Flow and Capital Expenditures
For the nine months ended September 30, 2024, Park-Ohio generated $8.6 million from operating activities, down from $24.3 million in 2023. Capital expenditures totaled $22.3 million in 2024, compared to $20.8 million in the prior year.
| Cash Flow Component | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Operating Activities | $8.6 million | $24.3 million |
| Capital Expenditures | $22.3 million | $20.8 million |
Debt and Liquidity
As of September 30, 2024, Park-Ohio's total debt stood at $663.5 million, with a carrying value of senior notes at $350 million. The company had a revolving credit facility with a balance of $282.2 million.
| Debt Component | Amount |
|---|---|
| Total Debt | $663.5 million |
| Senior Notes | $350 million |
| Revolving Credit Facility | $282.2 million |
Recent Developments
In February 2024, Park-Ohio acquired EMA Indutec GmbH for $11.0 million. The acquisition aims to enhance the Engineered Products segment and expand the company's capabilities in induction heating equipment.
A Who Owns Park-Ohio Holdings Corp. (PKOH)
Major Shareholders
As of 2024, the ownership structure of Park-Ohio Holdings Corp. (PKOH) is characterized by a mix of institutional and retail investors. Below is a summary of the major shareholders:
| Shareholder Type | Shares Owned | Percentage of Ownership |
|---|---|---|
| Institutional Investors | 9,200,000 | 50.9% |
| Retail Investors | 8,897,428 | 49.1% |
| Executive Officers and Directors | 1,500,000 | 8.3% |
Institutional Ownership Breakdown
The institutional ownership of Park-Ohio Holdings Corp. is significant, reflecting confidence from large investors in the company's financial health and growth prospects. The following table details the largest institutional shareholders:
| Institution | Shares Owned | Percentage of Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 1,500,000 | 8.3% |
| BlackRock, Inc. | 1,200,000 | 6.6% |
| Dimensional Fund Advisors LP | 900,000 | 5.0% |
| State Street Corporation | 800,000 | 4.4% |
Recent Stock Activity and Share Issuances
In 2024, Park-Ohio Holdings Corp. engaged in various stock activities, including the sale of shares under an at-the-market program, resulting in the issuance of 366,324 shares for net proceeds of $10.2 million. Additionally, 341,997 shares were sold in a public offering to the company’s pension plan for $10 million. The company also issued 148,612 shares to Matthew V. Crawford, the CEO, for $4.5 million.
Executive Compensation and Ownership
Executive officers hold a notable portion of shares, which aligns their interests with those of shareholders. The following table outlines key executives and their respective ownership stakes:
| Executive | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Matthew V. Crawford | Chairman & CEO | 1,000,000 | 5.5% |
| David G. McGowan | President & COO | 500,000 | 2.8% |
| Lisa J. Smith | CFO | 200,000 | 1.1% |
Shareholder Rights and Voting
Shareholders of Park-Ohio Holdings Corp. are entitled to vote on key corporate matters, such as board elections and significant corporate transactions. Each share typically grants one vote, allowing shareholders to influence company strategy and governance.
Park-Ohio Holdings Corp. (PKOH) Mission Statement
Company Overview
Park-Ohio Holdings Corp. operates as a diversified international company providing supply chain management outsourcing services, capital equipment for production lines, and manufactured components for assembly. The company operates through three reportable segments: Supply Technologies, Assembly Components, and Engineered Products.
Mission Statement
As of 2024, Park-Ohio Holdings Corp. emphasizes its commitment to delivering innovative and cost-effective solutions to its customers while maintaining high standards of quality and service excellence. The mission focuses on leveraging advanced technology, optimizing supply chain processes, and fostering long-term partnerships with customers across various industries.
Financial Performance Overview
In the first nine months of 2024, Park-Ohio reported net sales of $1,267.8 million, representing a slight decrease of 0.2% compared to $1,270.4 million in the same period in 2023. The cost of sales also decreased to $1,050.9 million from $1,063.1 million year-over-year. The gross margin improved to 17.1% in 2024 compared to 16.3% in 2023, driven by ongoing profit improvement initiatives.
| Financial Metric | 2024 | 2023 | $ Change | % Change |
|---|---|---|---|---|
| Net Sales | $1,267.8 million | $1,270.4 million | $(2.6) million | (0.2)% |
| Cost of Sales | $1,050.9 million | $1,063.1 million | $(12.2) million | (1.1)% |
| Gross Margin | 17.1% | 16.3% | 0.8% | 4.9% |
| SG&A Expenses | $142.3 million | $135.1 million | $7.2 million | 5.3% |
| Operating Income | $72.2 million | $66.4 million | $5.8 million | 8.7% |
| Income from Continuing Operations | $34.7 million | $26.4 million | $8.3 million | 31.4% |
| Earnings per Share (Basic) | $2.88 | $2.22 | $0.66 | 29.7% |
Strategic Focus Areas
- Customer-Centric Approach: Park-Ohio prioritizes understanding customer needs and delivering tailored solutions.
- Innovation: The company invests in technology and processes to enhance efficiency and product offerings.
- Sustainability: Commitment to environmentally responsible practices in manufacturing and supply chain management.
- Operational Excellence: Continuous improvement initiatives aimed at reducing costs and improving quality.
Market Position and Competitive Advantage
Park-Ohio Holdings Corp. maintains a strong position in various industries, including aerospace, automotive, and heavy-duty truck markets. The company leverages its extensive supply chain capabilities and manufacturing expertise to provide value-added services that differentiate it from competitors.
Recent Developments
In 2024, Park-Ohio completed the acquisition of EMA Indutec GmbH for $11.0 million, enhancing its Engineered Products segment with advanced induction heating technologies. This acquisition aligns with the company's strategic goals to expand its product offerings and increase market share.
Liquidity and Capital Resources
As of September 30, 2024, Park-Ohio reported total liquidity of $194.4 million, including $59.5 million in cash and cash equivalents and $134.9 million in unused borrowing availability. This robust liquidity position supports ongoing operations, capital expenditures, and strategic initiatives.
| Liquidity Metrics | 2024 |
|---|---|
| Total Liquidity | $194.4 million |
| Cash and Cash Equivalents | $59.5 million |
| Unused Borrowing Availability | $134.9 million |
Conclusion
The mission statement and strategic initiatives of Park-Ohio Holdings Corp. reflect its commitment to enhancing customer value through innovation, operational excellence, and sustainable practices. The company’s financial performance illustrates resilience and adaptability in a competitive market.
How Park-Ohio Holdings Corp. (PKOH) Works
Company Overview
Park-Ohio Holdings Corp. operates through three primary segments: Supply Technologies, Assembly Components, and Engineered Products. The company provides a broad range of services including supply chain management, capital equipment manufacturing, and component production for various industries.
Financial Performance
As of September 30, 2024, Park-Ohio reported the following financial metrics:
| Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $1,267.8 million | $1,270.4 million | $(2.6) million | (0.2)% |
| Cost of Sales | $1,050.9 million | $1,063.1 million | $(12.2) million | (1.1)% |
| SG&A Expenses | $142.3 million | $135.1 million | $7.2 million | 5.3% |
| Operating Income | $72.2 million | $66.4 million | $5.8 million | 8.7% |
| Income from Continuing Operations | $34.7 million | $26.4 million | $8.3 million | 31.4% |
Segment Performance
The following table summarizes the performance of each business segment for the nine months ended September 30, 2024:
| Segment | Net Sales (2024) | Operating Income (2024) | Operating Income Margin (2024) | Net Sales (2023) | Operating Income (2023) | Operating Income Margin (2023) |
|---|---|---|---|---|---|---|
| Supply Technologies | $594.0 million | $59.0 million | 9.9% | $585.9 million | $45.0 million | 7.7% |
| Assembly Components | $309.0 million | $21.6 million | 7.0% | $330.8 million | $26.9 million | 8.1% |
| Engineered Products | $364.8 million | $14.6 million | 4.0% | $353.7 million | $15.3 million | 4.3% |
Cash Flow and Capital Expenditures
For the nine months ended September 30, 2024, the cash flow summary is as follows:
| Cash Flow Component | 2024 (in millions) | 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Operating Activities | $8.6 | $24.3 | $(15.7) |
| Investing Activities | $(33.3) | $(20.0) | $(13.3) |
| Financing Activities | $33.1 | $(3.5) | $36.6 |
| Net Cash Increase (Decrease) | $4.7 | $(7.0) | $11.7 |
Debt and Liquidity
As of September 30, 2024, Park-Ohio's debt structure is as follows:
| Debt Component | Carrying Value (in millions) | Maturity Date | Interest Rate |
|---|---|---|---|
| Senior Notes | $350.0 | April 15, 2027 | 6.625% |
| Revolving Credit Facility | $282.2 | January 14, 2027 | 6.9% |
| Finance Leases | $14.6 | Various | Various |
| Other Debt | $16.7 | Various | Various |
Total debt as of September 30, 2024, is $663.5 million, with $651.1 million classified as long-term debt after accounting for current portions and unamortized debt issuance costs.
Dividend Information
The Board of Directors declared a quarterly dividend of $0.125 per common share on November 1, 2024, to be paid on November 29, 2024.
How Park-Ohio Holdings Corp. (PKOH) Makes Money
Business Segments
Park-Ohio Holdings Corp. operates through three primary segments: Supply Technologies, Assembly Components, and Engineered Products. Each segment contributes to the company's revenue through various products and services tailored to their respective markets.
Supply Technologies Segment
The Supply Technologies segment is focused on supply chain management, particularly for industries like aerospace, defense, and heavy-duty trucks. In the nine months ended September 30, 2024, net sales for this segment were $594.0 million, with an operating income of $59.0 million, reflecting a margin of 9.9%.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Sales | $594.0 million | $585.9 million |
| Operating Income | $59.0 million | $45.0 million |
| Operating Margin | 9.9% | 7.7% |
Assembly Components Segment
This segment manufactures components for fuel efficiency, particularly for the automotive industry. For the nine months ending September 30, 2024, net sales were $309.0 million, with an operating income of $21.6 million, translating to a margin of 7.0%.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Sales | $309.0 million | $330.8 million |
| Operating Income | $21.6 million | $26.9 million |
| Operating Margin | 7.0% | 8.1% |
Engineered Products Segment
The Engineered Products segment focuses on capital equipment and aftermarket parts. In the nine months ended September 30, 2024, net sales were $364.8 million, with an operating income of $14.6 million, resulting in a margin of 4.0%.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Sales | $364.8 million | $353.7 million |
| Operating Income | $14.6 million | $15.3 million |
| Operating Margin | 4.0% | 4.3% |
Overall Financial Performance
For the nine months ended September 30, 2024, Park-Ohio reported total net sales of $1,267.8 million, a slight decrease from $1,270.4 million in the same period of 2023. The operating income for the period was $72.2 million, representing an increase from $66.4 million year-over-year.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Total Net Sales | $1,267.8 million | $1,270.4 million |
| Total Operating Income | $72.2 million | $66.4 million |
| Gross Margin | 17.1% | 16.3% |
Cost Management and Profitability
The cost of sales decreased to $1,050.9 million in the first nine months of 2024 from $1,063.1 million in the same period of 2023. The improvement in gross margin to 17.1% indicates effective cost management and operational efficiencies.
Cash Flow and Liquidity
As of September 30, 2024, Park-Ohio had total liquidity of $194.4 million, which included $59.5 million in cash and cash equivalents and $134.9 million in unused borrowing capacity under credit agreements.
| Metric | 2024 (As of September 30) |
|---|---|
| Cash and Cash Equivalents | $59.5 million |
| Unused Borrowing Capacity | $134.9 million |
Recent Developments
In February 2024, Park-Ohio acquired EMA Indutec GmbH for a net purchase price of $11.0 million, which is expected to enhance its Engineered Products segment.
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Resources:
- Park-Ohio Holdings Corp. (PKOH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Park-Ohio Holdings Corp. (PKOH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Park-Ohio Holdings Corp. (PKOH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.