ParkOhio Announces Increased Revenues and Earnings in the Third Quarter

CLEVELAND, Oct. 31, 2012

THIRD QUARTER RESULTS

Net sales were $286.5 million for the third quarter of 2012, an increase of $43.0 million, or 18%, from net sales of $243.5 million for the third quarter of 2011.  ParkOhio reported net income of $10.7 million, or $.88 per diluted share, for the third quarter of 2012.  This compared to a net income of $2.9 million, or $.24 per diluted share, for the third quarter of 2011, which included a restructuring and asset impairment charge of $5.4 million relating to the assets of a unit of the Assembly Components segment. The effect of the restructuring and asset impairment charge was $.45 per diluted share in the third quarter of 2011.

YEAR-TO-DATE RESULTS

Net sales were $858.3 million for the first nine months of 2012, an increase of $126.3 million, or 17%, from net sales of $732.0 million for the first nine months of 2011.  ParkOhio reported net income of $24.1 million, or $1.99 per diluted share, for the first nine months of 2012, which included the impact of a $13.0 million pre-tax litigation settlement charge, or $.69 per diluted share. This compared to net income of $10.5 million, or $.87 per diluted share, for the first nine months of 2011, which included debt extinguishment costs of $7.3 million resulting from the refinancing of the Company's senior subordinated notes and the amendment of its revolving credit facility and income taxes of $2.1 million resulting from the retirement of $26.2 million of its senior subordinated notes that were held by a foreign affiliate.  Also, during the third quarter of 2011, the Company recorded a restructuring and asset impairment charge of $5.4 million relating to the assets of a unit of the Assembly Components segment. The combined effect of the debt extinguishment costs, tax impact of the retirement of the senior subordinated notes and the restructuring and asset impairment charge was $1.23 per diluted share for the nine-month period ended September 30, 2011.

2012 REVENUE AND EARNINGS GUIDANCE UPDATE

We currently forecast our consolidated 2012 revenues to be approximately 18% greater than 2011 revenues.  We are also updating our earnings per diluted share forecast to be in the range of $2.45 to $2.55 per diluted share, which includes $.69 per diluted share for the unusual $13.0 million pre-tax litigation settlement charge in the second quarter of 2012.  In addition, we are forecasting EBITDA, as defined, to be approximately $94 million for the year ended December 31, 2012 which also includes the settlement charge as an expense in deriving EBITDA, as defined.  EBITDA, as defined, reflects earnings before interest expense, income taxes, and excludes depreciation, amortization, certain non-cash charges and corporate-level expenses as defined in the Company's revolving credit agreement.