PARK OHIO HOLDINGS CORP

PARK OHIO HOLDINGS CORP

Previous company name
PARK OHIO INDUSTRIES INC
Name change date
7/3/1992
Company Overview
Park Ohio Holdings Corp. is a US-based holding company of a group that operates as an industrial supply chain logistics and diversified manufacturing business operating in three segments: Integrated Logistics Solutions (ILS), Aluminum Products and Manufactured Products. ILS provides customers with integrated supply chain management services for a range of high-volume, specialty production components. The company’s Aluminum Products business manufactures cast and machined aluminum components, and its Manufactured Products business is a manufacturer of engineered industrial products. The company’s customers include the following industries: Aerospace, Appliance, Consumer Electronics, Heavy Duty Trucking, HVAC and Plumbing, Lawn and Garden, and Steel.
Park Ohio Holdings Corp. was incorporated as a publicly quoted company with registered business office in Cleveland, Ohio. As of October 2006, the company acquired NABS, Inc. (NABS), which is an international supply chain manager of production components, providing services to high technology companies in the computer, electronics, and consumer products industries. In January 2006, Park-Ohio completed the acquisition of Foundry Service GmbH.
Business Summary
Park-Ohio Holdings Corp. (Holdings) conducts its business primarily through the subsidiaries owned by its direct subsidiary, Park-Ohio Industries, Inc. (Park-Ohio). The Company is an industrial supply chain logistics and diversified manufacturing business operating in three segments: Supply Technologies, Aluminum Products and Manufactured Products. Supply Technologies provides its customers with Total Supply Management services for a range of specialty production components. Its Aluminum Products business manufactures cast and machined aluminum components, and its Manufactured Products business is a manufacturer of engineered industrial products. Its businesses serve industrial original equipment manufacturers (OEMs) in a variety of industrial sectors, including the automotive and vehicle parts, heavy-duty truck, industrial equipment, steel, rail, electrical distribution and controls, aerospace and defense, oil and gas, and power sports/fitness equipment.
Description and history
Park-Ohio Holdings Corp. (Holdings), incorporated in 1998, conducts its business primarily through the subsidiaries owned by its direct subsidiary, Park-Ohio Industries, Inc. (Park-Ohio). The Company is an industrial supply chain logistics and diversified manufacturing business operating in three segments: Supply Technologies, Aluminum Products and Manufactured Products. Supply Technologies provides its customers with Total Supply Management services for a range of specialty production components. Its Aluminum Products business manufactures cast and machined aluminum components, and its Manufactured Products business is a manufacturer of engineered industrial products. Its businesses serve industrial original equipment manufacturers (OEMs) in a variety of industrial sectors, including the automotive and vehicle parts, heavy-duty truck, industrial equipment, steel, rail, electrical distribution and controls, aerospace and defense, oil and gas, power sports/fitness equipment, heating, ventilation and air conditioning (HVAC), electrical components, appliance and semiconductor equipment industries.

Supply Technologies

The Company’s Supply Technologies business provides its customers with Total Supply Management, a proactive solutions approach that manages the efficiencies of every aspect of supplying production parts and materials to its customers’ manufacturing floor, from strategic planning to program implementation. Total Supply Management includes such services as engineering and design support, part usage and cost analysis, supplier selection, quality assurance, bar coding, product packaging and tracking, just-in-time and point-of-use delivery, electronic billing services and ongoing technical support. The Company operates 40 logistics service centers in the United States, Mexico, Canada, Puerto Rico, Scotland, Ireland, Hungary, China, Taiwan, Singapore and India, as well as production sourcing and support centers in Asia. Through its supply chain management programs, it supplies more than 175,000 globally sourced production components, many of which are specialized and customized to meet individual customers’ needs.

The Supply Technologies segment also engineers and manufactures precision cold formed and cold extruded products, including locknuts, SPAC nuts and wheel hardware, which are principally used in applications where controlled tightening is required due to high vibration. Supply Technologies produces both standard items and specialty products to customer specifications, which are used in large volumes by customers in the automotive, heavy-duty truck and rail industries.

During the year ended December 31, 2009, approximately 85% of Supply Technologies’ net sales were to customers in the United States. Remaining sales were to manufacturing facilities of large, multinational customers located in Canada, Mexico, Europe and Asia. Total Supply Management services and production components are used in a variety of industries. Supply Technologies markets and sells its services to over 5,400 customers domestically and internationally. The markets served by Supply Technologies are the heavy-duty truck, automotive and vehicle parts, electrical distribution and controls, consumer electronics, power sports/fitness equipment, HVAC, agricultural and construction equipment, semiconductor equipment, aerospace and defense, and appliance industries.

Aluminum Products

The Company’s Aluminum Products business casts and machines aluminum engine, transmission, brake, suspension and other components for automotive, agricultural equipment, construction equipment, heavy-duty truck and marine equipment original equipment manufacturers (OEMs), primarily on a sole-source basis. Aluminum Products’ principal products include front engine covers, cooling modules, control arms, knuckles, pump housings, clutch retainers and pistons, master cylinders, pinion housings, oil pans and flywheel spacers. In addition, it also provides value-added services, such as design engineering, machining and part assembly.

Manufactured Products

The Manufactured Products segment operates a group of manufacturing businesses that design and manufacture a range of engineered products, including induction heating and melting systems, pipe threading systems, rubber products and forged and machined products. Holdings manufactures these products in 11 facilities in the United States and 10 facilities in Canada, Mexico, the United Kingdom, Belgium, Germany, China and Japan. Its induction heating and melting business specializes in the engineering, construction, service and repair of induction heating and melting systems, primarily for the ferrous and non-ferrous metals, silicon, coatings, forging, foundry, automotive and construction equipment industries. Its induction heating and melting systems are engineered and built to customer specifications and are used primarily for melting, heating, and surface hardening of metals and curing of coatings.

Approximately 45% of the Company’s induction heating and melting systems’ revenues are derived from the sale of replacement parts and provision of field service, primarily for the installed base of its own products. The Company’s pipe threading business serves the oil and gas industry. It also engineers and installs mechanical forging presses, and sells spare parts and provides field service for the existing base of mechanical forging presses and hammers in North America. It forges aerospace and defense structural components, such as landing gears and struts, as well as rail products, such as railcar center plates and draft lugs. The Company manufactures injection mold rubber and silicone products, including wire harnesses, shock and vibration mounts, spark plug boots and nipples and general sealing gaskets.

Holdings sells induction heating and other capital equipment to component manufacturers and OEMs in the ferrous and non-ferrous metals, silicon, coatings, forging, foundry, automotive, truck, construction equipment and oil and gas industries. It sells forged and machined products to locomotive manufacturers, machining companies and sub-assemblers who finish aerospace and defense products for OEMs, and railcar builders and maintenance providers. The Company sells rubber products primarily to sub-assemblers in the automotive, food processing and consumer appliance industries.

Business Line
Holding company of a group that operates as an industrial supply chain logistics and diversified manufacturing business operating in three segments: Integrated Logistics Solutions (ILS), Aluminum Products and Manufactured Products
Subsidiary
A JACKS MANUFACTURING CO., THE
Advisor
ERNST & YOUNG LLP
IPO date

US SIC Code
3714
Company Address
6065, Parkland Boulevard

City province or state postal code
44124, CLEVELAND, OH
Phone: +1 440 947 2000
Fax: +1 440 947 2099
Country address: UNITED STATES OF AMERICA
Website url: www.pkoh.com