Union Electric Steel hikes prices on forged, cast products

CARNEGIE, Pa. - Ampco-Pittsburgh Corporation (NYSE:AP), currently trading at $1.83 with a market capitalization of $37.56 million, has declared through its subsidiary, Union Electric Steel Corporation, an immediate price increase of 6-8% on all its forged and cast products worldwide. The adjustment, effective on all new orders, addresses rising costs in labor, health care, mill supplies, and other elements not covered by existing surcharges. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 1.99, indicating its ability to meet short-term obligations.

The company’s Vice President of Sales & Marketing, Skip Reinert, explained the rationale behind the hike, stating, "This price adjustment is necessary to maintain a reliable security of supply of superior quality of all our products for our customers."

Ampco-Pittsburgh Corporation, headquartered in Carnegie, Pennsylvania, is noted for the manufacture and sale of specialty metal products and customized equipment across various industries globally. Its operating subsidiary, Union Electric Steel Corporation, is recognized as a leading producer of forged and cast rolls for the steel and aluminum industries and also supplies open-die forged products to multiple sectors, including oil and gas.

In addition to its core product offerings, Ampco-Pittsburgh produces air and liquid processing equipment, comprising custom-engineered finned tube heat exchange coils and large custom air handling systems. The corporation operates manufacturing facilities in the United States, England, Sweden, and Slovenia, and engages in joint ventures in China, with sales offices established in North America, Asia, Europe, and the Middle East.

The company’s announcement is grounded in a press release statement and follows the standard corporate practice of adjusting pricing to align with market conditions and internal cost structures. The move is part of the company’s response to inflationary pressures and is aimed at ensuring the continued provision of quality products to its customer base. Trading at a price-to-book ratio of 0.61 and with technical indicators suggesting oversold conditions, investors seeking detailed analysis can find comprehensive valuation metrics and growth projections in the InvestingPro Research Report, which provides expert insights on the company’s financial health and market position.

Investors and market watchers will note that price adjustments in the industry are not uncommon in response to shifts in cost factors. This increase from Union Electric Steel is a strategic measure to address specific economic pressures affecting the company’s operations.

In other recent news, Allied Properties REIT reported a robust fourth quarter for 2024, with net operating income increasing by 6.5% year-over-year. The company also saw a significant 14% rise in leasing activity, with new leasing up by 41%. Development completions contributed an additional $26 million to EBITDA for the year. Despite a projected 4% contraction in funds from operations for 2025, Allied Properties remains focused on achieving a 90% occupancy rate by the end of the year. The company reassured investors by maintaining its current distribution levels, reflecting confidence in its strategic direction. Allied also completed $229 million in asset dispositions, surpassing its target and using proceeds for debt repayment. Analyst firms such as Raymond James and TD Cowen noted the company’s strategic moves and outlook, with Allied expressing optimism about its market positioning. These developments suggest Allied Properties is navigating its operational and financial landscape with a focus on growth and stability.

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