Good morning. My name is Nicole, and I will be your conference operator today. At this time, I would like to welcome everyone to the 3Q Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question-and-answer session. [Operator Instructions]. Thank you. Melanie Sprowson, you may begin your conference.

Thank you, Nicole and good morning to everyone joining us on today’s third quarter conference call. I’m joined by John Stanik, our Chief Executive Officer and Dee Ann Johnson, Vice President of Finance and Chief Accounting Officer. Due to a family emergency, Mike McAuley, our Chief Financial Officer will not be joining us today. Before we begin, I’d 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 of the Corporation’s control. The Corporation’s actual results may differ significantly from those projected or suggested in any forward-looking statement due to a variety of 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 and remain available for two weeks following the conclusion of the call. To access the earnings release or the webcast replay, please consult the Investors section of our website at ampcopgh.com. Now let me turn this call over to Dee Ann, who will provide an overview of the company’s financial performance for the third quarter.

Thank you, Melanie, and good morning, everyone. Before I begin my review of our third quarter results, I’d like to remind our listeners today that the comparison of our results for the quarter and year-to-date versus the prior year in both our press release and on this call will be largely affected by our acquisition of Åkers AB and certain of its affiliated companies, which we completed on March 3, 2016. In addition, while our press release this morning provides commentary on both the quarter and year-to-date, I will focus my comments primarily on Q3 results. Sales for the Corporation for the third quarter of 2016 were $82.9 million. This compares to sales for the third quarter of 2015 of $58.1 million. Total sales for the current quarter for the Forged and Cast Engineered Products segment were up 74% compared to Q3 2015, driven primarily by the inclusion of the acquired Åkers business segment. Sales for the Air and Liquid Processing segment for the third quarter of 2016 were down slightly from the prior year. I will comment more on the segment results in a moment. Gross profit as a percentage of net sales was 18.8% for the third quarter of 2016 versus 16.2% for the third quarter of 2015. The increase is due to a number of factors including actions to reduce employee benefit costs such as pensions and OPEB, lower headcount and favorable product mix versus the prior year. Selling and administrative expenses were $15 million for the third quarter of 2016 in comparison to $8.7 million for the third quarter of 2015, an increase of $6.3 million. Included in the current quarter are selling administrative costs for the acquired Åkers businesses of approximately $5 million and restructuring charges of approximately $1.3 million. Depreciation and amortization expense of…

Thank you, Dee Ann. Good morning and welcome to our call. The third quarter was a very busy one for the company. We continue to make numerous moves to aggressively position the company to optimize performance and integrate Åkers under current market conditions and we have made significant progress. During this discussion, I will provide added color to the third quarter financial performance, update you on numerous third quarter activities, include some general commentary on our 2016 strategic plan update and talk a bit about a pending acquisition and how important it is to our future. I will end with a preview of the fourth quarter. There were three major sources of unfavorability in the company’s performance for the third quarter. One, low cast roll shipments in Europe and the U.S., which is the largest impact by far. Two, plant maintenance turnarounds for all of our roll plants, which occurred in July and August, and three, continued low margin contracts. I have reported low cast roll sales for each of the first three quarters of 2016. Remember there were two primary roll types, forged rolls and cast rolls. It is our belief that we have not lost significant share. Therefore, we believe this decrease in volume constitutes a negative step change in the roll market size in 2016. Currently, we have four cast roll manufacturing plants in the world, one’s in China that is operating near capacity and is profitable and three totaled in the U.S. and Europe. These last three have been operating at low utilization rates all year. Judging by the cast roll commitments we’ve received thus far for 2017 shipments, we cannot continue to operate three plants. Therefore, we have decided to idle our Avonmore, Pennsylvania plant beginning in January of 2017. Idling a plant requires a…

Thanks, John. First, I want to make sure everyone understands that this is a non-cash accounting charge and it does not impact actual cash taxes moving forward. We have not lost the benefit of these net operating losses or deferred tax assets. But given our three year cumulative loss position, the three years ended September 30, 2016. Under the accounting rules, our ability to consider other objective evidence such as future earnings forecasts becomes limited because of the substantial negative evidence of losses we’ve incurred from a historical perspective. So, we are required to reserve against our deferred tax assets in the form of a valuation allowance. Unfortunately, these are the rules. If and when the company returns to a sustained level of profitability, sufficient to conclude that it is more likely than not that the deferred tax assets are realizable, the valuation allowance will be reversed. Thanks, John.

Thank you, Dee Ann. Moving on to other third quarter activities. We successfully negotiated another asbestos insurance buyout, this one valued at $10.9 million. We expect payment this month and in the month of November. Our deep dive into our liabilities which will now extend through 2026 is nearly completed. The final regional approvals for the Chinese joint venture restructuring still have not been received, believe it or not. All documents have been completed and submitted to the authorities. We now await approval, which is expected in November. As I’ve described in last quarter’s call, the restructuring will add a Chinese third-party to the joint venture who will be responsible for operating the business on a day-to-day basis. This company, this third-party is in the roll business and has been in the roll business and therefore has advantages, when molding this volume into their current operations and achieving a profit for the joint venture. The proceeds from the selling of part of our stock to the third-party are now expected to be a Q4 event. Additionally, during the third quarter, we completed the 2016 update to our strategic plan, which primarily served to include for the first time the Åkers portion of the business. We also continued due diligence for a pending acquisition which is expected to be signed and closed possibly by the end of the day. I will now cover both of these topics in more detail. First, the strategic plan update. The update utilizes the three-year 2015 strategic plan developed last year as its base and updates the progress made to the plans initiatives and expected result estimates after the first year of operation. This update includes the addition of the Åkers’ acquisition strategic plan for the first time. Additionally, it updated the state of the industry,…

[Operator Instructions] Your first question comes from line of Albert Sebastian from Prospect Advisors. Your line is open.

Good morning.

Good morning.

John, can you just give us your thoughts on if the company’s benefited at all from the imposition of anti-dumping, countervailing duties against imported steel into the country?

I think it is but it’s just beginning. In the months of August and September, and now October with October being the strongest month, we are beginning to see more customer commitments. Prices are still fragile in the U.S. Prices for us and volume of the business is still fragile in the U.S., primarily because the economy just isn't creating enough demand for steel. In Europe that situation seems to be getting a little better and remember European tariffs lagged U.S. tariffs by roughly three months. China continues to raise prices, which I think for the world and for the market is a very good thing and I’m talking about steel prices not roll prices. So, I think and I mentioned this, a couple of quarters ago when the tariffs began that this would require a trickle-down effect to hit us. I think we are starting to see it. And in fact, I can clearly say that in the past significant period of time, the bookings that we had in October are the highest we’ve seen. And some of those are cast rolls. So, I think the tariffs are helping. I think that the Chinese price increases that are occurring in China are helping and hopefully, we will continue to see some more volume increases. But I am concerned about the U.S.

Okay. Couple other questions. Cash flow from operations, what was that for the quarter and also CapEx in the quarter?

CapEx in the quarter was approximately $4.5 million. Working capital, cash flows from operations, we expect to have negative cash flows from operations due to the loss and changes in working capital.

Yes. One comment about the capital expenditure, we are very close to finishing the $9 million heat treat facility in our Harmon Creek, Pennsylvania facility. This was one of the other very strategic needs that we had for the open die forged business. So that project is being started up currently and will be closed within the next month or two and will have another fairly significant capital hit in Q4 that was projected and expected.

Okay. Good. Thank you. And one last question. In terms of the dividend, you reduced the dividend earlier in the year when you made the Åkers acquisition. Are you comfortable with the dividend at these levels?

Well, I think that our strategic plan makes us believe that the future is very promising and is not going to create an urgent situation that would require us to change the dividend. I continue to think and I continue to recommend to our Board of Directors that the shareholders deserve at least some type of return, considering how poor the company’s performance has been over the last few years. So, I’m fighting to keep the dividend. We are still -- obviously, as we are announcing another acquisition, we are still able to meet the strategic needs of the company. So, I think while I can't speak for the Board of Directors, my position is that we should maintain the dividend going into the future.

Thank you very much.

Let me make another statement before we take another question. The roll business and the acquisition of Åkers was a very important strategic item for us. And I’m not going to go over all the reasons that we made the acquisition but clearly, it has positioned us to be very, very strong in the industry. And we are making so many changes to the company through the integration process that I’m convinced will be positive for the company in the near future. But there were two things that were missing when we elected in last year’s strategic plan to pursue expanding our penetration into the open die forging market. One was heat treats and I just talked about that a few seconds ago and the other was our inability to have the broad spectrum of metals that are needed by the potential customers in those numerous market verticals that I referred to in my prepared comments. The heat treat facility is, as I said nearly complete, complete for all intensive purposes. This acquisition -- this is a very experienced company. It has all of the physical assets in terms of ladle metallurgy that will allow us to make all of the specialty types of metals that we will need to be a player in this business. It’s going to take a little bit of time for us to get our products qualified. But with our success in the fracking industry, we already have somewhat of a reputation in the oil industry. And then ASW, of course has a reputation in some of these other markets. So, we have now by this announcement which hopefully, we will make in the next 24 hours or 48 hours, this third piece of the three piece puzzle now completes where we need to be in our strategic plan to diversify the company and that’s a very positive accomplishment for us.

[Operator Instructions] There are no further questions at this time.

Okay. We do have a closing comment. I’ve said in the past that we are not waiting for industry recovery to occur before this company becomes profitable and that maybe getting a little tired to hear for our shareholders. But I assure you we’ve worked endlessly to restructure Ampco-Pittsburgh to expand its focus to new markets, as I just described to improve our market strength in the roll industry which I believe is complete and to provide for future growth. I’m very pleased and proud of what the company has accomplished. There’ve been many hurdles. However, we are clearly making progress. And very soon this will be a company with a strong, profitable performance and a great future. Thank you and have a good day.

This concludes today’s conference. You may now disconnect.