Park-Ohio Holdings is driven to look for trouble. The holding company, operating through Park-Ohio Industries and its subsidiaries, troubleshoots industrial supply chain logistics issues and makes a slew of fasteners and other industrial components. The company straddles three business segments: Supply Technologies sources and procures production components for OEMs in industries ranging from automotive to aerospace; Manufactured Products produces specialized systems and parts used in such industrial applications as coatings, forging, oil and gas, and rail; and the Aluminum Products unit casts and machines metal parts -- knuckles, oil pans, cylinders -- used by auto, agricultural, construction, and marine OEMs.
Diverse, high-volume, specialty manufacturing creates opportunities and challenges for Park-Ohio's businesses. Sales rise and fall with the economy's impact on manufacturing industries, particularly heavy-duty truck, automotive and vehicle parts, consumer electronics and appliances, and semiconductor equipment. Nearly 25% of the company's sales are attributable to the automotive market and 5% to the heavy-duty truck industry. After being pummeled by the recession in 2008 and 2009, Park-Ohio's consolidated year-over-year sales in 2009 dropped by more than 30%. In 2010, however, net sales saw a 16% improvement from the previous year. The company's largest segment, supply technologies, showed a 22% improvement and aluminum products increased by nearly 30%.
For Park-Ohio, 2010 was a year in which the company sought out complementary businesses to acquire. The company hopes to bolster its fastener segment with the acquisition of Lawson Products' Assembly Component Systems (ACS). ACS provides OEM manufacturers with just-in-time delivery of fasteners and has a distribution network that stretches across Illinois, Kansas, Ohio, and Tennessee. Continuing to build up its aluminum operations, Park-Ohio's General Aluminum Mfg. subsidiary bought Rome Die Casting (Rome), a manufacturer of aluminum high pressure die castings, in late 2010. Rome's operations were rolled into General Aluminum.
The company's aluminum products' capacity benefits from its ability to leverage a breadth of aluminum manufacturing processes for a diversity of components. Automotive and OEMs, which represent more than 75% of this segment's sales, helped to boost Park-Ohio's revenues. The top five customers within the Aluminum Products' segment account for nearly 60% of its sales.
Park-Ohio's Manufactured Products segment boasts an amalgamation of specialized manufacturers that produce highly engineered components for a range of equipment OEMs. This segment's businesses, which account for about one-third of the company's consolidated sales, saw sales increase just over 2%; although a minimal increase, the segment's 2009 sales were down about 33% compared to 2008.
Moving forward in 2010, Chairman and CEO Edward Crawford is driving the company to diversify its roster of customers as well as expand its international reach. Edward Crawford, and President and COO (and son) Matthew Crawford collectively own more than 30% of the company. – less
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