ParkOhio, a diversified international company with a supply chain management outsourcing service, recently released its second-quarter update, which includes two new acquisitions.
Effective August 2, 2022, ParkOhio acquired Southern Fasteners & Supply, Inc. The new acquisition will be included in ParkOhio’s Supply Technologies segment, headquartered in Winston-Salem, North Carolina, which has annual revenues of approximately $25 million.
Southern Fasteners, which is expected to be immediately accretive to operating margins and earnings per share, provides commercial fasteners and industrial supplies to a diverse base of MRO and OEM customers throughout the U.S., specializing in the design of customized inventory programs for its customers.
Southern Fasteners complements Supply Technologies’ growth initiatives, which are centered around industrial supply and MRO products for a global OEM customer base.
Additionally, ParkOhio finalized the acquisition of Charter Automotive (Changzhou) Co. Ltd., which will also be included in the Supply Technologies segment. Headquartered in Changzhou, China, Charter Automotive has annual revenues of approximately $15 million. The company, which is expected to be immediately accretive to operating margins and earnings per share, is strategic to our fastener manufacturing business and will accelerate the global growth of its proprietary products to electric vehicles and other auto-related platforms.
“Our momentum continues to build across our business as we achieved nearly all-time record revenue results resulting from strength in almost all end markets as well as new business,” said Matthew V. Crawford, ParkOhio president, chairman, and CEO. “While adjusted earnings were below our expectations, our actions specifically around pricing and restructuring have continued to show traction, and we expect improved results, especially in ACG, during the second half of the year. We are pleased to have closed two recent acquisitions. Both are highly strategic and will be immediately accretive to our margins and our consolidated earnings.”
Net sales were $428.6 million in the second quarter of 2022, an increase of 22% from $350.0 million in the second quarter of 2021. Net income attributable to ParkOhio common shareholders was $1.0 million, or $0.08 per diluted share, in the second quarter of 2022, a significant improvement compared to a net loss in the 2021 second quarter of $5.3 million, or $0.44 per diluted share. On an adjusted basis, net income attributable to ParkOhio common shareholders in the second quarter of 2022 was $0.21 per diluted share, compared to a net loss of $0.33 in the second quarter of 2021.
Headquartered in Cleveland, Ohio, ParkOhio operates more than 125 manufacturing sites and supply chain logistics facilities worldwide.