Amcast Expects Losses for Fiscal 2001, Second, Third Quarters

    DAYTON, Ohio--Feb. 28, 2001--Amcast Industrial Corporation, expects to report losses for its fiscal 2001 second and third quarters, ending March 2 and May 31, respectively, according to Byron O. Pond, recently elected president and chief executive officer.
    "Results for the second fiscal quarter are expected to show a diluted EPS loss ranging from 70 to 80 cents per share," Mr. Pond said. "Fiscal third quarter results will also be a loss, but of lesser magnitude."
    Mr. Pond joined the company as CEO on February 14, replacing John H. Shuey, who resigned, said declining automotive production in North America and customer launch delays in Europe are having a significant impact on the company's performance. Additionally, Amcast's Flow Control Products segment is being adversely affected by slowness in construction markets and increased price competition. Also, the company expects to recognize higher medical and benefit costs, certain expenses related to the management change, and adjustments to the provision for Italian taxes.
    "Weakening market conditions show no signs of abating in the near term," Mr. Pond said. "Inventories are at levels well above the end of our last fiscal year, August 31, 2000, and must be reduced. We will be working aggressively to bring them back into line over the next few months," Pond added. "These actions will negatively impact second half operating performance, but they will strengthen our balance sheet. In addition, we are initiating a more aggressive, company-wide cost reduction program that will significantly lessen spending rates and manpower costs during the balance of our fiscal year."
    Mr. Pond said he has completed a review of Amcast's manufacturing sites and affirmed the company's long-term growth potential. "I have been favorably impressed with our people and many of the initiatives underway to improve performance," Pond said. "However, there are significant opportunities for greater gains. We also expect to complete our review process of financial and operating plans for the balance of the fiscal year before our March 21 Board of Directors meeting at which time we will report final results of our fiscal second quarter."
    "It is clear that the company is in very promising businesses serving important sectors of the economy," Pond said. "Automotive aluminum content continues to grow in response to energy conserving vehicle design initiatives. Amcast, an aluminum technology leader, stands to greatly benefit from new applications for its products," he added.
    Amcast Industrial Corporation is a leading manufacturer of technology-intensive metal products. Its two business segments are brand name Flow Control Products marketed through national distribution channels, and Engineered Components for original equipment manufacturers. The company serves the automotive, construction, and industrial sectors of the economy.

    This release includes "forward-looking statements" which are subject to change based on various factors and uncertainties that may cause actual results to differ significantly from expectations. These factors include, among others; general economic conditions less favorable than expected, fluctuating demand in the automotive and housing industries, price pressures in the company's automotive and flow control businesses, effectiveness of production improvement plans, inherent uncertainties in connection with international operations and foreign currency fluctuations, and labor availability and relations at the company and its customers.