Shares of Ampco-Pittsburgh Corporation AP soared nearly 70% during Wednesday’s pre-market after its subsidiary, Union Electric Steel Corporation, secured contracts estimated at $11.7 million.
What Happened: At the time of writing, Ampco-Pittsburgh was trading at $1.290 after it closed at $0.7649, according to Benzinga Pro.
As per their press release Wednesday, Union Electric Steel Corporation will provide rolls for two new rolling mill projects in Mexico and Scandinavia, with deliveries expected in the first half of 2025.
The contracts include a $6.7 million agreement with Ternium Mexico S.A. de C.V., a leading North American steel producer, and a $5 million deal with a major European OEM mill builder constructing a new facility in Scandinavia.
The contract wins align with Ampco-Pittsburgh’s announcement of a record-breaking quarter for its Air and Liquid Processing segment, with over 50% surge in new orders from the previous quarter, marking the highest quarterly order intake in the segment’s history.
Brett McBrayer, CEO of Ampco-Pittsburgh, lauded Union Electric’s commitment to delivering high-quality products to the global steel and aluminum markets. He also emphasized the company’s increased market presence due to strategic investments in sales and manufacturing capacity.
Ampco-Pittsburgh anticipates its total backlog for the quarter ending June 30, to be in the range of $360 to $365 million, representing sequential growth of 3.2% to 4.6% compared to the previous quarter.
Why It Matters: The recent success of Ampco-Pittsburgh and its subsidiary, Union Electric Steel Corporation, comes amid a period of consolidation and adaptation in the steel industry. Smaller transactions are confirming a positive merger and acquisition trend in the steel industry, reflecting companies’ commitment to strengthening their global leadership in the manufacturing and distribution of steel and high-performance alloys.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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