10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission file number: 000-03134

Park-Ohio Holdings Corp.

(Exact name of registrant as specified in its charter)

Ohio			34-1867219
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
6065 Parkland Boulevard,	Cleveland,	Ohio	44124
(Address of principal executive offices)			(Zip Code)

(440) 947-2000

(Registrant’s telephone number, including area code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, Par Value $1.00 Per Share	PKOH	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.  ☑ Yes  ☐ No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  ☑ Yes  ☐ No

1

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☑
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accountings standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  ☐ Yes  ☑ No

Number of shares outstanding of registrant’s Common Stock, par value $1.00 per share, as of July 31, 2020: 12,601,666 shares.

2

Park-Ohio Holdings Corp. and Subsidiaries

Index

		Page
	Part I. Financial Information
Item 1.	Financial Statements	3
	Condensed consolidated balance sheets — June 30, 2020 (unaudited) and December 31, 2019	3
	Condensed consolidated statements of income (loss) (unaudited) — Three and six months ended June 30, 2020 and 2019	4
	Condensed consolidated statements of comprehensive income (loss) (unaudited) — Three and six months ended June 30, 2020 and 2019	5
	Condensed consolidated statements of shareholders' equity (unaudited) — Three and six months ended June 30, 2020 and 2019	6
	Condensed consolidated statements of cash flows (unaudited) — Six months ended June 30, 2020 and 2019	8
	Notes to unaudited condensed consolidated financial statements — June 30, 2020	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosure About Market Risk	29
Item 4.	Controls and Procedures	29
	Part II. Other Information
Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 6.	Exhibits	32
Signatures		33

2

Part I. Financial Information 

Item 1. Financial Statements

Park-Ohio Holdings Corp. and Subsidiaries

Condensed Consolidated Balance Sheets

	(Unaudited)
	June 30, 2020		December 31, 2019
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	51.9	$	56.0
Accounts receivable, net	196.0		261.3
Inventories, net	315.7		327.2
Prepaid and other current assets	87.4		81.2
Total current assets	651.0		725.7
Property, plant and equipment, net	228.8		237.6
Operating lease right-of-use assets	63.2		64.3
Goodwill	107.2		108.4
Intangible assets, net	86.8		90.6
Other long-term assets	84.4		83.8
Total assets	$	1,221.4	$	1,310.4
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Trade accounts payable	$	128.0	$	175.0
Current portion of long-term debt and short-term debt	12.6		16.8
Current portion of operating lease liabilities	12.2		11.9
Accrued expenses and other	90.5		101.3
Total current liabilities	243.3		305.0
Long-term liabilities, less current portion:
Long-term debt	553.8		545.2
Long-term operating lease liabilities	52.1		53.6
Other long-term liabilities	56.0		57.0
Total long-term liabilities	661.9		655.8
Park-Ohio Holdings Corp. and Subsidiaries shareholders' equity	302.5		335.6
Noncontrolling interests	13.7		14.0
Total equity	316.2		349.6
Total liabilities and shareholders' equity	$	1,221.4	$	1,310.4

Refer to the accompanying notes to these unaudited condensed consolidated financial statements.

3

Park-Ohio Holdings Corp. and Subsidiaries

Condensed Consolidated Statements of Income (Loss) (Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
	(In millions, except per share data)
Net sales	$	228.3		$	415.3		$	594.6		$	835.4
Cost of sales	214.1			349.1			526.5			703.9
Gross profit	14.2			66.2			68.1			131.5
Selling, general and administrative expenses	35.1			46.9			76.0			89.7
Operating (loss) income	(20.9		)	19.3			(7.9		)	41.8
Other components of pension income and other postretirement benefits expense, net	1.8			1.5			3.6			2.8
Interest expense, net	(7.5		)	(8.7		)	(15.5		)	(16.9		)
(Loss) income before income taxes	(26.6		)	12.1			(19.8		)	27.7
Income tax benefit (expense)	9.6			(4.2		)	4.1			(8.1		)
Net (loss) income	(17.0		)	7.9			(15.7		)	19.6
Net loss (income) attributable to noncontrolling interests	0.4			(0.3		)	0.3			(0.8		)
Net (loss) income attributable to Park-Ohio Holdings Corp. common shareholders	$	(16.6	)	$	7.6		$	(15.4	)	$	18.8
(Loss) income per common share attributable to Park-Ohio Holdings Corp. common shareholders:
Basic	$	(1.38	)	$	0.62		$	(1.27	)	$	1.54
Diluted	$	(1.38	)	$	0.61		$	(1.27	)	$	1.51
Weighted-average shares used to compute (loss) income per share:
Basic	12.1			12.2			12.2			12.2
Diluted	12.1			12.4			12.2			12.4

Refer to the accompanying notes to these unaudited condensed consolidated financial statements.

4

Park-Ohio Holdings Corp. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
	(In millions)
Net (loss) income	$	(17.0	)	$	7.9		$	(15.7	)	$	19.6
Other comprehensive (loss) income, net of tax:
Currency translation	2.9			(2.5		)	(13.7		)	(1.8		)
Pension and other postretirement benefits	0.4			0.4			0.9			5.7
Total other comprehensive (loss) income	3.3			(2.1		)	(12.8		)	3.9
Total comprehensive (loss) income, net of tax	(13.7		)	5.8			(28.5		)	23.5
Comprehensive loss (income) attributable to noncontrolling interests	0.4			(0.3		)	0.3			(0.8		)
Comprehensive (loss) income attributable to Park-Ohio Holdings Corp. common shareholders	$	(13.3	)	$	5.5		$	(28.2	)	$	22.7

Refer to the accompanying notes to these unaudited condensed consolidated financial statements.

5

Park-Ohio Holdings Corp. and Subsidiaries

Condensed Consolidated Statements of Shareholders' Equity (Unaudited)

	Common Stock
	Shares	Amount		Additional Paid-In Capital			Retained Earnings			Treasury Stock			Accumulated Other Comprehensive (Loss) Income			Noncontrolling Interest			Total
	(In whole shares)	(In millions)
Balance at January 1, 2020	15,706,398	$	15.7	$	129.8		$	298.2		$	(71.1	)	$	(37.0	)	$	14.0		$	349.6
Other comprehensive income (loss)	—	—		—			1.2			—			(16.1		)	0.1			(14.8		)
Stock-based compensation expense	—	—		1.4			—			—			—			—			1.4
Stock-based compensation activity	1,000	—		—			—			—			—			—			—
Dividends	—	—		—			(1.6		)	—			—			—			(1.6		)
Purchases of treasury stock (180,827 shares)	—	—		—			—			(2.9		)	—			—			(2.9		)
Payments of withholding taxes on share awards	—	—		—			—			(0.1		)	—			—			(0.1		)
Balance at March 31, 2020	15,707,398	$	15.7	$	131.2		$	297.8		$	(74.1	)	$	(53.1	)	$	14.1		$	331.6
Other comprehensive (loss) income	—	—		—			(16.6		)	—			3.3			(0.4		)	(13.7		)
Stock-based compensation expense	—	—		1.3			—			—			—			—			1.3
Stock-based compensation activity	283,993	0.3		(0.3		)	—			—			—			—			—
Purchases of treasury stock (149,376 shares)	—	—		—			—			(2.4		)	—			—			(2.4		)
Payments of withholding taxes on share awards	—	—		—			—			(0.6		)	—			—			(0.6		)
Balance at June 30, 2020	15,991,391	$	16.0	$	132.2		$	281.2		$	(77.1	)	$	(49.8	)	$	13.7		$	316.2

6

	Common Stock
	Shares		Amount			Additional Paid-In Capital			Retained Earnings			Treasury Stock			Accumulated Other Comprehensive (Loss) Income			Noncontrolling Interest			Total
	(In whole shares)		(In millions)
Balance at January 1, 2019	15,555,275		$	15.6		$	125.7		$	265.9		$	(67.3	)	$	(40.9	)	$	13.6		$	312.6
Other comprehensive income	—		—			—			11.2			—			6.0			0.5			17.7
Stock-based compensation expense	—		—			1.9			—			—			—			—			1.9
Stock-based compensation activity	38,000		—			—			—			—			—			—			—
Dividends	—		—			—			(1.6		)	—			—			(0.3		)	(1.9		)
Payments of withholding taxes on share awards	—		—			—			—			(1.0		)	—			—			(1.0		)
Balance at March 31, 2019	15,593,275		15.6			127.6			275.5			(68.3		)	(34.9		)	13.8			329.3
Other comprehensive income	—		—			—			7.6			—			(2.1		)	0.3			5.8
Stock-based compensation expense	—		—			(0.2		)	—			—			—			—			(0.2		)
Stock-based compensation activity	(75,550	)	(0.1		)	0.1			—			—			—			—			—
Dividends	—		—			—			(1.6		)	—			—			(0.4		)	(2.0		)
Purchases of treasury stock (27,069)	—		—			—			—			(0.9		)	—			—			(0.9		)
Payments of withholding taxes on share awards	—		—			—			—			(1.8		)	—			—			(1.8		)
Balance at June 30, 2019	15,517,725		$	15.5		$	127.5		$	281.5		$	(71.0	)	$	(37.0	)	$	13.7		$	330.2

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Dividends per common share	$	—	$	0.125	$	0.125	$	0.250

Refer to the accompanying notes to these unaudited condensed consolidated financial statements.

7

Park-Ohio Holdings Corp. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)

	Six Months Ended June 30,
	2020			2019
	(In millions)
OPERATING ACTIVITIES
Net (loss) income	$	(15.7	)	$	19.6
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	17.8			17.7
Stock-based compensation expense	2.7			1.7
Changes in operating assets and liabilities:
Accounts receivable	62.1			(20.9		)
Inventories	7.9			(10.7		)
Prepaid and other current assets	(6.5		)	5.4
Accounts payable and accrued expenses	(57.2		)	(6.5		)
Other	(1.6		)	(3.5		)
Net cash provided by operating activities	9.5			2.8
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(9.4		)	(20.7		)
Proceeds from sale of an asset	1.4			—
Business acquisitions, net of cash acquired	—			(7.6		)
Net cash used by investing activities	(8.0		)	(28.3		)
FINANCING ACTIVITIES
Proceeds from revolving credit facility, net	8.7			27.7
Payments on other debt	(6.7		)	(2.8		)
Proceeds from other debt	1.9			0.7
Payments on finance lease facilities, net	(0.6		)	(3.2		)
Dividends	(1.6		)	(3.9		)
Purchase of treasury shares	(5.3		)	(0.9		)
Payments of withholding taxes on share awards	(0.7		)	(2.8		)
Net cash (used) provided by financing activities	(4.3		)	14.8
Effect of exchange rate changes on cash	(1.3		)	0.3
Decrease in cash and cash equivalents	(4.1		)	(10.4		)
Cash and cash equivalents at beginning of period	56.0			55.7
Cash and cash equivalents at end of period	$	51.9		$	45.3
Interest paid	$	14.8		$	15.8
Income taxes paid	$	1.2		$	5.3

Refer to the accompanying notes to these unaudited condensed consolidated financial statements.

8

Park-Ohio Holdings Corp. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

June 30, 2020

NOTE 1 — Basis of Presentation

The condensed consolidated financial statements include the accounts of Park-Ohio Holdings Corp. and its subsidiaries (collectively, “we,” “our” or the “Company”). All intercompany accounts and transactions have been eliminated in consolidation.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three- and six- month periods ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The balance sheet at December 31, 2019 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

NOTE 2 — New Accounting Pronouncements

Accounting Pronouncements Adopted

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments,” which replaced the current incurred loss impairment model with a methodology that reflected

expected credit losses. Under the new methodology, entities will measure expected credit losses on financial instruments held at amortized cost, including trade receivables, based on historical experience, current conditions and reasonable forecasts. The Company adopted this standard as of January 1, 2020. The adoption of the standard had an immaterial impact on the Company. For the three- and six-month periods ended June 30, 2020, the provision and write-offs were not material, and the allowance approximated $5.2 million as of June 30, 2020.

In December 2019, the FASB issued ASU 2019-12, “Income Taxes (ASC 740) - Simplifying the Accounting for Income Taxes,” which simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of ASC 740 by clarifying and amending existing guidance. The Company adopted this standard as of April 1, 2020. The adoption of the standard had an immaterial impact on the Company's tax provision.

Recent Accounting Pronouncements Not Yet Adopted

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which was issued in response to concerns about structural risks of interbank offered rates, and, particularly, the risk of cessation of the London Interbank Offered Rate. The guidance is effective upon issuance and may be adopted on any date on or after March 12, 2020. However, the relief is temporary and generally cannot be applied to contract modifications that occur after December 31, 2022 or hedging relationships entered into or evaluated after that date. The Company is currently evaluating the expected impact of this standard.

9

Park-Ohio Holdings Corp. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

June 30, 2020

No other recently issued ASUs are expected to have a material impact on our results of operations, financial condition or liquidity.

NOTE 3 - Revenue

We disaggregate our revenue by product line and geographic region of our customer, as we believe these best depict how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by economic factors. See details in the tables below.

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	(In millions)
PRODUCT LINE
Supply Technologies	$	86.0	$	141.0	$	207.9	$	285.8
Engineered specialty fasteners and other products	8.4		20.5		27.3		41.0
Supply Technologies Segment	94.4		161.5		235.2		326.8
Fuel, rubber and plastic products	39.8		91.1		124.5		180.7
Aluminum products	15.1		45.2		58.6		93.9
Assembly Components Segment	54.9		136.3		183.1		274.6
Industrial equipment	53.4		80.7		119.5		161.3
Forged and machined products	25.6		36.8		56.8		72.7
Engineered Products Segment	79.0		117.5		176.3		234.0
Total revenues	$	228.3	$	415.3	$	594.6	$	835.4

10

Park-Ohio Holdings Corp. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

June 30, 2020

	Supply Technologies Segment		Assembly Components Segment		Engineered Products Segment		Total Revenues
	(In millions)
Three Months Ended June 30, 2020
GEOGRAPHIC REGION
United States	$	61.3	$	36.1	$	45.5	$	142.9
Europe	14.0		2.2		10.6		26.8
Asia	11.7		6.4		17.7		35.8
Mexico	5.0		3.6		1.3		9.9
Canada	1.6		6.5		2.7		10.8
Other	0.8		0.1		1.2		2.1
Total	$	94.4	$	54.9	$	79.0	$	228.3
Three Months Ended June 30, 2019
GEOGRAPHIC REGION
United States	$	110.6	$	97.0	$	67.9	$	275.5
Europe	24.2		3.8		20.4		48.4
Asia	9.5		4.0		15.8		29.3
Mexico	13.4		10.6		3.4		27.4
Canada	3.3		20.5		6.6		30.4
Other	0.5		0.4		3.4		4.3
Total	$	161.5	$	136.3	$	117.5	$	415.3

11

Park-Ohio Holdings Corp. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

June 30, 2020

	Supply Technologies Segment		Assembly Components Segment		Engineered Products Segment		Total Revenues
	(In millions)
Six Months Ended June 30, 2020
GEOGRAPHIC REGION
United States	$	151.3	$	126.8	$	98.7	$	376.8
Europe	37.7		6.4		26.3		70.4
Asia	21.2		10.7		33.5		65.4
Mexico	19.5		13.8		3.5		36.8
Canada	4.5		24.9		9.1		38.5
Other	1.0		0.5		5.2		6.7
Total	$	235.2	$	183.1	$	176.3	$	594.6
Six Months Ended June 30, 2019
GEOGRAPHIC REGION
United States	$	221.0	$	198.7	$	136.0	$	555.7
Europe	50.7		8.1		40.8		99.6
Asia	20.8		9.2		30.7		60.7
Mexico	27.1		19.6		6.4		53.1
Canada	6.5		38.2		14.2		58.9
Other	0.7		0.8		5.9		7.4
Total	$	326.8	$	274.6	$	234.0	$	835.4

For over time arrangements, contract liabilities primarily relate to advances or deposits received from the Company’s customers before revenue is recognized. These amounts, which totaled $35.9 million and $35.7 million at June 30, 2020 and December 31, 2019, respectively, are recorded in Accrued expenses and other in the Condensed Consolidated Balance Sheets.

For over time arrangements, contract assets primarily relate to revenue recognized in advance of billings to customers under long-term contracts accounted for under percentage of completion. These amounts, which totaled $65.4 million and $61.7 million at June 30, 2020 and December 31, 2019, respectively, are recorded in Prepaid and other current assets in the Condensed Consolidated Balance Sheets.

NOTE 4 — Segments

Our operating segments are defined as components of the enterprise for which separate financial information is available and evaluated on a regular basis by our chief operating decision maker to allocate resources and assess performance.

For purposes of measuring business segment performance, the Company utilizes segment operating income, which is defined as revenues less expenses identifiable to the product lines within each segment. The Company does not allocate items that are non-operating; unusual in nature; or are corporate costs, which include but are not limited to executive and share-based compensation and corporate office costs. Segment operating income reconciles to consolidated income before income taxes by deducting corporate costs; certain non-cash and/or non-operating items; Other components of pension income and other postretirement benefits expense, net; and interest expense, net.

Results by business segment were as follows:

12

Park-Ohio Holdings Corp. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

June 30, 2020

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
	(In millions)
Net sales:
Supply Technologies	$	94.4		$	161.5		$	235.2		$	326.8
Assembly Components	54.9			136.3			183.1			274.6
Engineered Products	79.0			117.5			176.3			234.0
	$	228.3		$	415.3		$	594.6		$	835.4
Segment operating (loss) income:
Supply Technologies	$	0.3		$	11.3		$	9.5		$	24.4
Assembly Components	(14.6		)	8.3			(8.3		)	16.6
Engineered Products	(0.8		)	11.5			3.0			19.6
Total segment operating (loss) income	(15.1		)	31.1			4.2			60.6
Corporate costs	(5.8		)	(7.5		)	(12.1		)	(14.5		)
One-time net expense related to former President(a)	—			(4.3		)	—			(4.3		)
Operating (loss) income	(20.9		)	19.3			(7.9		)	41.8
Other components of pension income and other postretirement benefits expense, net	1.8			1.5			3.6			2.8
Interest expense, net	(7.5		)	(8.7		)	(15.5		)	(16.9		)
(Loss) income before income taxes	$	(26.6	)	$	12.1		$	(19.8	)	$	27.7
(a) - In June 2019, Edward F. Crawford, our President, retired and resigned to become the U.S. Ambassador to Ireland. In connection with his resignation, the Company incurred one-time net expense of $4.3 million, consisting of a $6.0 million payment and reversal of $1.7 million of previously-recorded expense related to restricted stock forfeitures.

NOTE 5 — Plant Closure and Consolidation

In the first six months of 2020, the Company recorded charges totaling $2.3 million in its Assembly Components segment in connection with commencement of actions to close and consolidate its extrusion operations in Tennessee and its fuel operations in Shanghai, China, and to complete other cost-reduction actions in this segment.  The charges, which are included in cost of sales in the Condensed Consolidated Statements of Income (Loss), are comprised of severance and related employee costs of $1.2 million, asset impairment of $0.5 million, and other facility costs of $0.6 million.  The Company expects to incur additional costs related to these initiatives of approximately $1.7 million in the remainder of 2020.

NOTE 6 — Acquisition

On May 31, 2019, the Company acquired EFCO, Inc. d/b/a Erie Press Systems (“EP”) for $8.1 million in cash, of which $7.6 million was paid at closing and $0.5 million was paid in the third quarter of 2019.  The purchase price allocation for EP was finalized as of December 31, 2019. The purchase agreement stipulates potential contingent consideration of up to an additional $1.0 million based on two-year cumulative earnings before interest and taxes. The estimated fair value of the contingent consideration, valued using level 3 inputs, was approximately $1.0 million as of June 30, 2020.

13

Park-Ohio Holdings Corp. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

June 30, 2020

NOTE 7 — Inventories

Inventories, net consist of the following:

	June 30, 2020		December 31, 2019
	(In millions)
Raw materials and supplies	$	93.7	$	92.6
Work in process	51.6		51.3
Finished goods	168.4		181.3
LIFO reserve	2.0		2.0
Inventories, net	$	315.7	$	327.2

NOTE 8 — Accrued Warranty Costs

The Company estimates warranty claims that may be incurred based on current and historical data of products sold. Actual warranty expense could differ from the estimates made by the Company based on product performance. The following table presents changes in the Company’s product warranty liability for the three months and six months ended June 30, 2020 and 2019:

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
	(In millions)
Beginning balance	$	6.8		$	6.7		$	6.4		$	6.2
Claims paid	(0.4		)	(0.8		)	(0.6		)	(1.6		)
Warranty expense	0.1			1.2			0.7			2.5
Ending balance	$	6.5		$	7.1		$	6.5		$	7.1

NOTE 9 — Income Taxes

The Company’s tax provision for interim periods is determined using an estimate of its annual effective rate, adjusted for discrete items, if any, in each period.

On March 27, 2020, the President of the United States signed the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, a substantial tax-and-spending package intended to provide additional economic stimulus to address the impact of the COVID-19 pandemic.  Significant impacts of the CARES Act include the ability to carry back a net operating loss for five years and an increase of the Internal Revenue Code Section 163(j) interest expense disallowance limitations from 30% to 50% of adjusted taxable income, which will allow the Company to deduct additional interest expense for the 2019 and 2020 tax years.  The Company is assessing the potential impact of global relief packages and the CARES Act, including the effect upon the Company’s 2019 income tax return to be filed later in 2020, as well as the 2020 tax provision. Management continues to evaluate various impacts of the CARES Act.

Income tax benefit for the three months ended June 30, 2020 was $9.6 million, representing an effective rate of 36.1%, compared to income tax expense of $4.2 million, or 34.3%, for the three months ended June 30, 2019. The rate in the 2020 period is higher than the U.S. statutory rate of 21% due primarily to a U.S. net operating loss carryback to a prior year under the CARES Act. The rate in the 2019 period is higher than the U.S. statutory rate due to the impact of the $6.0 million one-time, non-deductible payment related to the resignation of the Company's former President.

Income tax benefit for the six months ended June 30, 2020 was $4.1 million, representing an effective rate of 20.7%, compared to income tax expense of $8.1 million, or 29.2%, for the six months ended June 30, 2019. The rate in the 2019 period includes the $6.0 million one-time, non-deductible payment mentioned above.

14

Park-Ohio Holdings Corp. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

June 30, 2020

NOTE 10 — Financing Arrangements

Debt consists of the following:

				Carrying Value at
	Maturity Date	Interest Rate at June 30, 2020		June 30, 2020			December 31, 2019
				(In millions)
Senior Notes	April 15, 2027	6.625	%	$	350.0		$	350.0
Revolving credit facility	November 26, 2024	1.37	%	181.3			173.2
Industrial Equipment Group European Facilities	December 21, 2021	3.25	%	—			4.6
Finance Leases	Various	Various		16.7			17.2
Other	Various	Various		24.3			23.5
Total debt				572.3			568.5
Less current portion of long-term debt and short-term debt				(12.6		)	(16.8		)
Less unamortized debt issuance costs				(5.9		)	(6.5		)
Total long-term debt, net				$	553.8		$	545.2

In 2018, Park-Ohio Industries, Inc. (“Park-Ohio”), the operating subsidiary of Park-Ohio Holdings Corp., entered into Amendment No. 1 to Seventh Amended and Restated Credit Agreement (the “Credit Agreement”) with a group of banks to increase the availability under the revolving credit facility from $350.0 million to $375.0 million, the Canadian revolving subcommitment from $35.0 million to $40.0 million and the European revolving subcommitment from $25.0 million to $30.0 million. Furthermore, Park-Ohio has the option, pursuant to the Credit Agreement, to increase the availability under the revolving credit facility by an aggregate incremental amount up to $100.0 million. In 2019, Park-Ohio entered into Amendment No. 4 to the Credit Agreement, extending the maturity of the Credit Agreement to November 26, 2024.

We had outstanding bank guarantees and letters of credit of approximately $30.6 million at June 30, 2020 and $33.8 million at December 31, 2019 under the Credit Agreement.

In 2017, Park-Ohio completed the issuance, in a private placement, of $350.0 million aggregate principal amount of 6.625% Senior Notes due 2027 (the “Notes”). The Notes are unsecured senior obligations of Park-Ohio and are guaranteed on an unsecured senior basis by the 100% owned material domestic subsidiaries of Park-Ohio.

In 2016, the Company, through its subsidiary, IEGE Industrial Equipment Holding Company Limited, entered into a financing agreement with Banco Bilbao Vizcaya Argentaria, S.A. The financing agreement provides the Company a loan up to $28.0 million as of June 30, 2020, as well as a revolving credit facility for up to $11.2 million to fund working capital and general corporate needs. No amounts were outstanding under the loan agreement or the revolving credit facility as of June 30, 2020.

In 2015, the Company entered into a finance lease agreement (the “Lease Agreement”). The Lease Agreement provides the Company up to $50.0 million for finance leases. Finance lease obligations of $16.7 million were borrowed under the Lease Agreement to acquire machinery and equipment as of June 30, 2020.

In 2015, the Company, through its Southwest Steel Processing LLC subsidiary, entered into a financing agreement with the Arkansas Development Finance Authority. The financing agreement provides the Company the ability to borrow up to $11.0 million for expansion of its manufacturing facility in Arkansas. The financing agreement matures in September 2025. The

15

Park-Ohio Holdings Corp. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

June 30, 2020

Company had $7.8 million of borrowings outstanding under this agreement as of June 30, 2020, which is included in Other above.

The following table represents fair value information of the Notes, classified as Level 1 using estimated quoted market prices.

	June 30, 2020		December 31, 2019
	(In millions)
Carrying amount	$	350.0	$	350.0
Fair value	$	288.9	$	358.3

NOTE 11 — Stock-Based Compensation

A summary of restricted share activity for the six months ended June 30, 2020 is as follows:

	2020
	Time-Based				Performance-Based
	Number of Shares		Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
	(In whole shares)				(In whole shares)
Outstanding - beginning of year	471,634		$	32.06	50,000	$	32.55
Granted(a)	296,093		17.73		—	—
Vested	(131,038	)	37.48		—	—
Canceled or expired	(5,000	)	37.55		—	—
Outstanding - end of period	631,689		$	24.11	50,000	$	32.55

(a) - Included in the granted amount are 6,100 restricted share units.

Stock-based compensation is included in Selling, general and administrative expenses in the consolidated statements of (loss) income. Total stock-based compensation expense (benefit) for the three months ended June 30, 2020 and 2019 was $1.3 million and $(0.2) million, respectively. Total stock-based compensation expense for the six months ended June 30, 2020 and 2019 was $2.7 million and $1.7 million, respectively. As of June 30, 2020, there was $11.0 million of unrecognized compensation cost related to non-vested stock-based compensation, which cost is expected to be recognized over a weighted-average period of 2.4 years.

NOTE 12 — Commitments and Contingencies

The Company is subject to various pending and threatened legal proceedings arising in the ordinary course of business. The Company records a liability for loss contingencies in the consolidated financial statements when a loss is known or considered probable and the amount can be reasonably estimated. Our provisions are based on historical experience, current information and legal advice, and they may be adjusted in the future based on new developments. Estimating probable losses requires the analysis of multiple forecasted factors that often depend on judgments and potential actions by third parties. Although it is not possible to predict with certainty the ultimate outcome or cost of these matters, the Company believes they will not have a material adverse effect on our consolidated financial statements.

Our subsidiaries are involved in a number of contractual and warranty-related disputes. We believe that appropriate liabilities for these contingencies have been recorded; however, actual results may differ materially from our estimates.

In addition to the routine lawsuits and asserted claims noted above, we are also a co-defendant in approximately 118 cases asserting claims on behalf of approximately 220 plaintiffs alleging personal injury as a result of exposure to asbestos. In every

16

Park-Ohio Holdings Corp. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

June 30, 2020

asbestos case in which we are named as a party, the complaints are filed against multiple named defendants. Historically, we have been dismissed from asbestos cases.  We intend to vigorously defend these cases and believe we will continue to be successful in being dismissed from such cases. 

While it is not possible to predict the ultimate outcome of asbestos-related lawsuits, claims and proceedings due to the unpredictable nature of personal injury litigation, and although our results of operations and cash flows for a particular period could be adversely affected by asbestos-related lawsuits, claims and proceedings, management believes that the ultimate resolution of these matters will not have a material adverse effect on our financial condition, liquidity or results of operations.

NOTE 13 — Pension and Postretirement Benefits

The components of net periodic benefit (income) costs recognized for the three months and six months ended June 30, 2020 and 2019 were as follows:

	Pension Benefits												Postretirement Benefits
	Three Months Ended June 30,						Six Months Ended June 30,						Three Months Ended June 30,				Six Months Ended June 30,
	2020			2019			2020			2019			2020		2019		2020		2019
	(In millions)
Service costs	$	1.1		$	0.9		$	2.2		$	1.8		$	—	$	—	$	—	$	—
Interest costs	0.6			0.6			1.1			1.3			0.1		—		0.1		0.1
Expected return on plan assets	(2.9		)	(2.7		)	(5.8		)	(5.4		)	—		—		—		—
Recognized net actuarial loss	0.5			0.5			1.0			1.1			—		0.1		0.1		0.1
Net periodic benefit (income) expense	$	(0.7	)	$	(0.7	)	$	(1.5	)	$	(1.2	)	$	0.1	$	0.1	$	0.2	$	0.2

NOTE 14 — Accumulated Other Comprehensive (Loss) Income

The components of and changes in accumulated other comprehensive loss for the three and six months ended June 30, 2020 and 2019 were as follows:

	Cumulative Translation Adjustment			Pension and Postretirement Benefits			Total			Cumulative Translation Adjustment			Pension and Postretirement Benefits			Total
	(In millions)
	Three Months Ended June 30, 2020									Three Months Ended June 30, 2019
Beginning balance	$	(39.0	)	$	(14.1	)	$	(53.1	)	$	(20.6	)	$	(14.3	)	$	(34.9	)
Currency translation (a)	2.9			—			2.9			(2.5		)	—			(2.5		)
Pension and OPEB activity, net of tax	—			0.4			0.4			—			0.4			0.4
Ending balance	$	(36.1	)	$	(13.7	)	$	(49.8	)	$	(23.1	)	$	(13.9	)	$	(37.0	)
	Six Months Ended June 30, 2020									Six Months Ended June 30, 2019
Beginning balance	$	(22.4	)	$	(14.6	)	$	(37.0	)	$	(21.3	)	$	(19.6	)	$	(40.9	)
Currency translation (a)	(13.7		)	—			(13.7		)	(1.8		)	—			(1.8		)
Pension and OPEB activity, net of tax	—			0.9			0.9			—			5.7			5.7
Ending balance	$	(36.1	)	$	(13.7	)	$	(49.8	)	$	(23.1	)	$	(13.9	)	$	(37.0	)

(a) No income taxes were provided on currency translation as foreign earnings are considered permanently reinvested.

17

Park-Ohio Holdings Corp. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

June 30, 2020

NOTE 15 — Weighted-Average Number of Shares Used in Computing Earnings Per Share

The following table sets forth the weighted-average number of shares used in the computation of earnings per share:

	Three Months Ended June 30,		Six Months Ended June 30,
	2020	2019	2020	2019
	(In millions)
Weighted-average basic shares outstanding	12.1	12.2	12.2	12.2
Plus: Dilutive impact of employee stock awards	—	0.2	—	0.2
Weighted-average diluted shares outstanding	12.1	12.4	12.2	12.4

Certain restricted stock awards are anti-dilutive and therefore excluded from the computation of diluted earnings per share. Anti-dilutive shares were 0.3 million and 0.0 million for the three months ended June 30, 2020 and 2019, respectively. Anti-dilutive shares were 0.3 million and 0.0 million for the six months ended June 30, 2020 and 2019, respectively.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Our condensed consolidated financial statements include the accounts of Park-Ohio Holdings Corp. and its subsidiaries (collectively, “we,” “our,” or the “Company”). All significant intercompany transactions have been eliminated in consolidation.

EXECUTIVE OVERVIEW

We are a diversified international company providing world-class customers with a supply chain management outsourcing service, capital equipment used on their production lines, and manufactured components used to assemble their products. We operate through three reportable segments: Supply Technologies, Assembly Components and Engineered Products.

Supply Technologies provides our customers with Total Supply Management™, a proactive solutions approach that manages the efficiencies of every aspect of supplying production parts and materials to our 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. Our Supply Technologies business services customers in the following principal industries: heavy-duty truck; sports and recreational equipment; aerospace and defense; semiconductor equipment; electrical distribution and controls; consumer electronics; bus and coaches; automotive, agricultural and construction equipment; HVAC; lawn and garden; plumbing; and medical.

Assembly Components manufactures products oriented towards fuel efficiency and reduced emission standards. Assembly Components designs, develops and manufactures aluminum products and highly efficient, high pressure direct fuel injection fuel rails and pipes; fuel filler pipes that route fuel from the gas cap to the gas tank; flexible multi-layer plastic and rubber assemblies used to transport fuel from the vehicle's gas tank and then, at extreme high pressure, to the engine's fuel injector nozzles. Our product offerings include gasoline direct injection systems and fuel filler assemblies, and industrial hose and injected molded rubber and plastic components. Additional products include cast and machined aluminum engine, transmission, brake, suspension and other components, such as pump housings, clutch retainers/pistons, control arms, knuckles, master cylinders, pinion housings, brake calipers, oil pans and flywheel spacers. Our products are primarily used in the following industries: automotive, including automotive and light-vehicle; agricultural equipment; construction equipment; heavy-duty truck; and marine original equipment manufacturers (“OEMs”), on a sole-source basis.

Engineered Products operates a diverse group of niche manufacturing businesses that design and manufacture a broad range of highly-engineered products, including induction heating and melting systems, pipe threading systems and forged and machined products. Engineered Products also produces and provides services and spare parts for the equipment it manufactures. The principal customers of Engineered Products are OEMs, sub-assemblers and end users in the following industries: ferrous

18

and non-ferrous metals; silicon; coatings; forging; foundry; heavy-duty truck; construction equipment; automotive; oil and gas; locomotive and rail manufacturing; and aerospace and defense.

Sales and segment operating income for these three segments are provided in Note 4 to the condensed consolidated financial statements, included elsewhere herein.

COVID-19 Pandemic

In March 2020, the World Health Organization categorized the novel coronavirus (“COVID-19”) as a pandemic, and it continues to spread throughout the United States and other countries across the world.  To limit the spread of COVID-19, governments have taken various actions, including the issuance of stay-at-home orders and social distancing guidelines, causing some businesses to suspend operations and a reduction in demand for many products from direct or ultimate customers.  Accordingly, businesses have adjusted, reduced or suspended operating activities.  This has negatively impacted several of the markets we serve, including the North American automotive market, which shut down production in mid-March 2020.  In late May, North American automotive production began a slow re-start, and at that time, our facilities in that market re-opened. While a number of our plants in our other segments continued to operate as essential businesses, many suspended or cut back on operating levels and shifts in response to lower customer demand as a result of the pandemic.

As a result of curtailed operations, we have taken actions in many of our operations to reduce the work force mostly through furloughs, although reductions in some positions are expected to be permanent.  As of June 30, 2020, we have brought back approximately 75% of our furloughed workforce as demand has started to increase. We will continue to review if and when additional such actions may be appropriate throughout the Company.  We also temporarily suspended our quarterly cash dividend to further enhance our liquidity.

While we expect the effects of the pandemic and the related responses to negatively impact our results of operations, cash flows and financial position, the uncertainty over the duration and severity of the economic and operational impacts of COVID-19 means we cannot reasonably estimate the related financial impact at this time.

Although there is significant uncertainty related to the anticipated impact of the recent COVID-19 outbreak on our future results, we believe our diversified portfolio of global businesses, our liquidity position of $196.9 million as of June 30, 2020, and the recent steps we have taken to reduce costs, leave us well-positioned to manage our business through this crisis as it continues to unfold.

19

RESULTS OF OPERATIONS

Three Months Ended June 30, 2020 Compared with Three Months Ended June 30, 2019

	Three Months Ended June 30,
	2020			2019			$ Change			% Change
	(Dollars in millions, except per share data)
Net sales	$	228.3		$	415.3		$	(187.0	)	(45.0	)%
Cost of sales	214.1			349.1			(135.0		)	(38.7	)%
Gross profit	14.2			66.2			(52.0		)	(78.5	)%
Gross margin	6.2		%	15.9		%
Selling, general and administrative (“SG&A”) expenses	35.1			46.9			(11.8		)	(25.2	)%
SG&A expenses as a percentage of net sales	15.4		%	11.3		%
Operating (loss) income	(20.9		)	19.3			(40.2		)	*
Other components of pension income and other postretirement benefits expense, net	1.8			1.5			0.3			20.0	%
Interest expense, net	(7.5		)	(8.7		)	1.2			(13.8	)%
(Loss) income before income taxes	(26.6		)	12.1			(38.7		)	*
Income tax benefit (expense)	9.6			(4.2		)	13.8			*
Net (loss) income	(17.0		)	7.9			(24.9		)	*
Net loss (income) attributable to noncontrolling interest	0.4			(0.3		)	0.7			*
Net (loss) income attributable to Park-Ohio Holdings Corp. common shareholders	$	(16.6	)	$	7.6		$	(24.2	)	*
(Loss) income per common share attributable to Park-Ohio Holdings Corp. common shareholders:
Basic	$	(1.38	)	$	0.62		$	(2.00	)	*
Diluted	$	(1.38	)	$	0.61		$	(1.99	)	*

* Calculation not meaningful

Net Sales

Net sales decreased 45.0% to $228.3 million in the second quarter of 2020 compared to $415.3 million in the same period in 2019. This decrease was primarily due to lower demand from several end markets primarily driven by the COVID-19 pandemic. Several customer plant closures and changes in production schedules affected our businesses, primarily in our Assembly Components segment.

The factors explaining the changes in segment net sales for the three months ended June 30, 2020 compared to the corresponding 2019 period are contained within the “Segment Results” section below.

Cost of Sales & Gross Profit

Cost of sales decreased 38.7% to $214.1 million in the second quarter of 2020 compared to $349.1 million in the same period in 2019. The decrease in cost of sales was primarily due to the decrease in net sales for the 2020 period compared to the corresponding period in 2019.

Gross margin was 6.2% in the second quarter of 2020 compared to 15.9% in the same period in 2019. The decrease was due primarily to lower profit flow-through from the lower sales volumes and unfavorable product mix, partially offset by the benefit of cost-reduction actions taken in response to current market conditions. The second quarter of 2020 includes charges of $2.9 million related to plant closure and consolidation, severance and other actions to reduce costs during this period. The second quarter of 2019 includes charges of $1.7 million related to plant closure and consolidation.

SG&A Expenses

20

SG&A expenses decreased to $35.1 million, or 15.4% of net sales, in the second quarter of 2020 compared to $46.9 million, or 11.3% of net sales, in the same period in 2019. The amount in 2019 includes a $4.3 million charge related to departure of the Company’s former President. SG&A expenses were down 25.2% compared to the same period a year ago, driven by the benefit from cost reduction actions implemented across the company in response to the COVID-19 pandemic and the 2019 charge mentioned above. The increase in SG&A as of percentage of net sales was due to a fixed portion of SG&A expenses over a lower revenue base.

Other Components of Pension Income and Other Postretirement Benefits Expense (“OPEB”), Net

Other components of pension income and OPEB expense, net was $1.8 million in the three months ended June 30, 2020 compared to $1.5 million in the corresponding period in 2019. This increase in the 2020 period relates to higher returns on plan assets in the 2020 period compared to the same period a year ago.

Interest Expense, net

Interest expense, net was $7.5 million in the second quarter of 2020 compared to $8.7 million in the 2019 period. The decrease was due to lower average interest rates and lower average outstanding borrowings during the 2020 period.

Income Tax Benefit/Expense

Income tax benefit for the three months ended June 30, 2020 was $9.6 million, representing an effective rate of 36.1%, compared to income tax expense of $4.2 million, or 34.3%, for the three months ended June 30, 2019. The rate in the 2020 period is higher than the U.S. statutory rate of 21% due primarily to a U.S. net operating loss carryback to a prior year under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The rate in the 2019 period is higher than the U.S. statutory rate due to the impact of the $6.0 million one-time, non-deductible payment related to the resignation of the Company’s former President.

21

RESULTS OF OPERATIONS

Six Months Ended June 30, 2020 Compared with Six Months Ended June 30, 2019

	Six Months Ended June 30,
	2020			2019			$ Change			% Change
	(Dollars in millions, except per share data)
Net sales	$	594.6		$	835.4		$	(240.8	)	(28.8	)%
Cost of sales	526.5			703.9			(177.4		)	(25.2	)%
Gross profit	68.1			131.5			(63.4		)	(48.2	)%
Gross margin	11.5		%	15.7		%
SG&A expenses	76.0			89.7			(13.7		)	(15.3	)%
SG&A expenses as a percentage of net sales	12.8		%	10.7		%
Operating (loss) income	(7.9		)	41.8			(49.7		)	*
Other components of pension income and OPEB expense, net	3.6			2.8			0.8			28.6	%
Interest expense, net	(15.5		)	(16.9		)	1.4			(8.3	)%
(Loss) income before income taxes	(19.8		)	27.7			(47.5		)	*
Income tax benefit (expense)	4.1			(8.1		)	12.2			*
Net (loss) income	(15.7		)	19.6			(35.3		)	*
Net loss (income) attributable to noncontrolling interests	0.3			(0.8		)	1.1			*
Net (loss) income attributable to Park-Ohio Holdings Corp. common shareholders	$	(15.4	)	$	18.8		$	(34.2	)	*
(Loss) income per common share attributable to Park-Ohio Holdings Corp. common shareholders:
Basic	$	(1.27	)	$	1.54		$	(2.81	)	*
Diluted	$	(1.27	)	$	1.51		$	(2.78	)	*

*Calculation not meaningful

Net Sales

Net sales decreased 28.8% to $594.6 million in the first six months of 2020 compared to $835.4 million in the same period in 2019. This decrease was primarily due to lower demand from several end markets primarily driven by the COVID-19 pandemic. Several customer plant closures and changes in production schedules affected our businesses, primarily in our Assembly Components segment.

The factors explaining the changes in segment net sales for the six months ended June 30, 2020 compared to the corresponding 2019 period are contained in the “Segment Results” section below.

Cost of Sales & Gross Profit

Cost of sales decreased 25.2% to $526.5 million in the first six months of 2020 compared to $703.9 million in the same period in 2019. The decrease in cost of sales was primarily due to the decrease in net sales described above.

Gross margin was 11.5% in the first six months of 2020 compared to 15.7% in the corresponding period in 2019. The decrease was due primarily to lower profit flow-through from the lower sales volumes and unfavorable product mix, partially offset by the benefit of cost-reduction actions taken in response to current market conditions. The 2020 period includes charges

22

of $3.1 million related to plant closure and consolidation, severance and other actions to reduce costs during this period. The 2019 period includes charges of $3.0 million related to plant closure and consolidation.

SG&A Expenses

SG&A expenses were $76.0 million, or 12.8% of net sales, in the first six months of 2020, compared to $89.7 million, or 10.7% of net sales, in the same period in 2019. The amount in 2019 includes a $4.3 million charge related to departure of the Company’s former President. SG&A expenses were down 15.3% compared to the same period a year ago, driven by the benefit from cost reduction actions implemented across the company and the impact of the 2019 charge mentioned above. The increase in SG&A as of percentage of net sales was due to a fixed portion of SG&A expenses over a lower revenue base.

Other Components of Pension Income and OPEB, Net

Other components of pension income and OPEB expense, net was $3.6 million in the first six months of 2020 compared to $2.8 million in the corresponding period in 2019. This increase was driven by higher returns on plan assets in the 2020 period compared to the same period a year ago.

Interest Expense, net

Interest expense, net was $15.5 million in the first six months of 2020 compared to $16.9 million in 2019. The decrease was due to lower average interest rates and lower average outstanding borrowings during the 2020 period.

Income Tax Benefit/Expense

Income tax benefit for the six months ended June 30, 2020 was $4.1 million, representing an effective rate of 20.7%, compared to income tax expense of $8.1 million, or 29.2%, for the six months ended June 30, 2019. The rate in the 2019 period includes the $6.0 million one-time, non-deductible payment mentioned above.

SEGMENT RESULTS

For purposes of business segment performance measurement, the Company utilizes segment operating income, which is defined as revenues less expenses identifiable to the product lines within each segment. The Company does not allocate items that are non-operating or unusual in nature or are corporate costs, which include but are not limited to executive and share-based compensation and corporate office costs.

Supply Technologies Segment

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
	(Dollars in millions)
Net sales	$	94.4		$	161.5		$	235.2		$	326.8
Segment operating income	$	0.3		$	11.3		$	9.5		$	24.4
Segment operating income margin	0.3		%	7.0		%	4.0		%	7.5		%

Three months ended June 30:

Net sales decreased 41.5% in the three months ended June 30, 2020 compared to the 2019 period due primarily to lower customer demand in certain end markets, including the Company’s automotive market, primarily affecting our fastener manufacturing business; the Company's truck and truck-related market, which was down 71% year-over-year; the Company’s power sports market, which was down 39% year-over-year; the Company’s aerospace and defense market, which was down 49% year-over-year; the Company’s industrial and agricultural equipment market, which was down 35% year-over-year; and

23

the Company’s consumer products market, which was down 29% year-over-year. These decreases were partially offset by higher customer demand in the Company’s semiconductor market, which was up 49% year-over-year; and the Company’s medical market, which was up 110% year-over-year. Sales were negatively impacted by the COVID-19 pandemic in certain end markets, primarily automotive, during the 2020 period.

Segment operating income decreased by $11.0 million and segment operating income margin was down 670 basis points in the 2020 period compared to the same period a year ago. These net decreases were driven by lower profit flow-through from lower sales levels and unfavorable sales mix, offset by the benefits of cost-reduction actions implemented in response to current market conditions.

Six months ended June 30:

Net sales decreased 28.0% in the six months ended June 30, 2020 compared to the 2019 period due primarily to lower customer demand in certain end markets, including the Company’s automotive market, primarily affecting our fastener manufacturing business; the Company's truck and truck-related market, which was down 52% year-over-year; the Company's power sports market, which was down 24% year-over-year; the Company's aerospace and defense market, which was down 39% year-over-year; and the Company’s consumer products market, which was down 25% year-over-year. These decreases were partially offset by higher customer demand in the Company’s semiconductor market, which was up 48% year-over-year; and the Company’s medical market, which was up 60% year-over-year. Sales were negatively impacted by the COVID-19 pandemic in certain end markets, primarily automotive, during the 2020 period.

Segment operating income decreased by $14.9 million and segment operating income margin was down 350 basis points in the 2020 period compared to the same period a year ago. These net decreases were driven by lower profit flow-through from lower sales levels and unfavorable sales mix, offset by the benefits of cost-reduction actions implemented in response to current market conditions.

Assembly Components Segment

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
	(Dollars in millions)
Net sales	$	54.9		$	136.3		$	183.1		$	274.6
Segment operating (loss) income	$	(14.6	)	$	8.3		$	(8.3	)	$	16.6
Segment operating (loss) income margin	(26.6		)%	6.1		%	(4.5		)%	6.0		%

Three months ended June 30:

Net sales decreased 59.7% in the three months ended June 30, 2020 compared to the 2019 period due primarily to customer plant closures and reduced vehicle production, which began in mid-March 2020 and continued until late May, when the market started a slow re-opening and our facilities re-started production, albeit at lower levels than before the pandemic.

Segment operating (loss) income in the 2020 period decreased by $22.9 million, and segment operating (loss) income margin decreased to (26.6)% from 6.1% in the corresponding period of 2019.  These decreases were due primarily to the impact of the lower sales volumes noted above, partially offset by the benefits of cost-reduction actions taken in response to current operating conditions as a result of the pandemic. In the 2020 period, this segment incurred charges of $2.2 million related to plant closing and consolidation and other actions to reduce costs. In the 2019 period, this segment incurred charges of $1.7 million related to plant closing and consolidation.

Six months ended June 30:

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Net sales decreased 33.3% in the six months ended June 30, 2020 compared to the 2019 period due primarily to customer plant closures and reduced vehicle production, which began in mid-March 2020 and continued until late May, when the market started a slow re-opening and our facilities re-started production, albeit at lower levels than before the pandemic.

Segment operating (loss) income in the 2020 period decreased by $24.9 million, and segment operating income (loss) margin decreased to (4.5)% from 6.0% in the corresponding period of 2019.  These decreases were due primarily to the impact of the lower sales volumes noted above, partially offset by the benefits of cost-reduction actions taken in response to current operating conditions as a result of the pandemic. In the 2020 period, this segment incurred charges of $2.3 million related to plant closing and consolidation and other actions to reduce costs. In the 2019 period, this segment incurred charges of $3.1 million related to plant closing and consolidation.

Engineered Products Segment

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
	(Dollars in millions)
Net sales	$	79.0		$	117.5		$	176.3		$	234.0
Segment operating (loss) income	$	(0.8	)	$	11.5		$	3.0		$	19.6
Segment operating (loss) income margin	(1.0		)%	9.8		%	1.7		%	8.4		%

Three months ended June 30:

Net sales were 32.8% lower in the 2020 period compared to the 2019 period. The decrease was due to lower customer demand for new capital equipment and lower demand in certain key end markets in our forged and machined products business, including oil and gas and aerospace and defense.

Segment operating (loss) income in the 2020 period decreased by $12.3 million compared to the corresponding 2019 period. This decrease was driven by the lower sales levels, unfavorable sales mix, the negative impacts of the COVID-19 pandemic on certain product lines, and manufacturing underabsorption at certain plants. The decreases were partially offset by the benefits of cost-reduction actions that the Company has implemented in response to current market conditions.

Six months ended June 30:

Net sales were 24.7% lower in the 2020 period compared to the 2019 period. The decrease was due to lower customer demand for new capital equipment and lower demand in certain key end markets in our forged and machined products business, including oil and gas and aerospace and defense. These decreases were partially offset by the sales from our Erie Press acquisition in May 2019.

Segment operating income in the 2020 period decreased by $16.6 million and segment operating income margin decreased by 670 basis points compared to the corresponding 2019 period. These decreases were driven by the lower sales levels, unfavorable sales mix, the negative impacts of the COVID-19 pandemic on certain product lines, and manufacturing underabsorption at certain plants. The decreases were partially offset by the benefits of cost-reduction actions that the Company has implemented in response to current market conditions.

Liquidity and Capital Resources

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The following table summarizes the major components of cash flow:

	Six Months Ended June 30,
	2020			2019			$ Change
Net cash (used) provided by:	(In millions)
Operating activities	$	9.5		$	2.8		$	6.7
Investing activities	(8.0		)	(28.3		)	20.3
Financing activities	(4.3		)	14.8			(19.1		)
Effect of exchange rate changes on cash	(1.3		)	0.3			(1.6		)
Increase (decrease) in cash and cash equivalents	$	(4.1	)	$	(10.4	)	$	6.3

Operating Activities

Cash generated by operating activities in the 2020 period was higher than in the prior year period, as the Company reduced working capital levels in response to current market conditions, which more than offset the low profitability in 2020.

Investing Activities

Capital expenditures were $9.4 million in the six months ended June 30, 2020 and were primarily to provide increased capacity for future growth in our Assembly Components segment and to maintain existing operations. In the first six months of 2019, we had $20.7 million of capital expenditures. The lower capital expenditures in the 2020 period reflect our decision to reduce spending in response to current market conditions and to enhance our liquidity. In the first six months of 2020, we had proceeds of $1.4 million from the sale of an asset.

Financing Activities

During the six months ended June 30, 2020, we had net borrowing on our revolving credit and other facilities of $3.3 million to fund our capital expenditures and our common share repurchases. We also repaid the remaining balance of $4.5 million on our loan with Banco Bilbao Vizcaya Argentaria, S.A. In the six months ended June 30, 2019, we had net debt repayments of $1.4 million. We paid dividends to shareholders of $1.6 million in the first six months of 2020 and $3.2 million in in the first six months of 2019, as we suspended our quarterly cash dividend in the second quarter of 2020 to preserve liquidity during the pandemic.

We do not have off-balance sheet arrangements, financing or other relationships with unconsolidated entities or other persons, other than the letters of credits disclosed in Note 9 to the condensed consolidated financial statements, included elsewhere herein.

Liquidity

Our liquidity needs are primarily for working capital, capital expenditures, dividends and acquisitions. Our primary sources of liquidity have been funds provided by operations, funds available from existing bank credit arrangements and the sale of our debt securities. Our existing financial resources (working capital and available bank borrowing arrangements) and anticipated cash flow from operations are expected to be adequate to meet anticipated cash requirements for at least the next twelve months, including but not limited to our ability to maintain current operations and fund capital expenditure requirements, service our debt, pay dividends, pursue acquisitions, and repurchase common shares.

As of June 30, 2020, we had total liquidity of $196.9 million, which included $145.0 million of unused borrowing availability and cash and cash equivalents of $51.9 million. We also suspended our quarterly cash dividend to further enhance our liquidity.

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The Company had cash and cash equivalents held by foreign subsidiaries of $39.0 million at June 30, 2020 and $45.4 million at December 31, 2019. We do not expect restrictions on repatriation of cash held outside the U.S. to have a material effect on our overall liquidity, financial condition or results of operations for the foreseeable future.

The Company has two components to its assertion regarding reinvestment of foreign earnings outside of the United States.  First, for all foreign subsidiaries except RB&W Corporation of Canada (“RB&W”), all earnings are permanently reinvested outside of the United States.  Second, for RB&W, dividend distributions may be made, but only to the extent of current earnings in excess of cash required to fund its business operations; all accumulated earnings are permanently reinvested.

Senior Notes

In April 2017, Park-Ohio Industries, Inc. (“Park-Ohio”), the operating subsidiary of Park-Ohio Holdings Corp., completed the sale, in a private placement, of $350.0 million aggregate principal amount of 6.625% Senior Notes due 2027 (the “Notes”). The net proceeds from the issuance of the Notes were used to repay in full our previously outstanding 8.125% Senior Notes due 2021 and our outstanding term loan, and to repay a portion of the borrowings then outstanding under our revolving credit facility.

Credit Agreement

In June 2018, Park-Ohio entered into Amendment No. 1 to its Seventh Amended and Restated Credit Agreement (the “Credit Agreement”). The amendment to the Credit Agreement, among other things, provided increases in the availability under the revolving credit facility from $350.0 million to $375.0 million, the Canadian revolving subcommitment from $35.0 million to $40.0 million and the European revolving subcommitment from $25.0 million to $30.0 million. Furthermore, the Company has the option, pursuant to the Credit Agreement, to increase the availability under the revolving credit facility by an aggregate incremental amount up to $100.0 million. In 2019, Park-Ohio entered into Amendment No. 4 to the Credit Agreement, extending the maturity of the Credit Agreement to November 26, 2024.

Finance Leases

In August 2015, the Company entered into a Capital Lease Agreement (the “Lease Agreement”). The Lease Agreement provides the Company up to $50.0 million for finance leases. Finance lease obligations of $16.7 million were borrowed under the Lease Agreement to acquire machinery and equipment as of June 30, 2020.

Covenants

The future availability of bank borrowings under the revolving credit facility provided by the Credit Agreement is based on (1) our calculated availability under the Credit Agreement and (2) if such calculated availability decreases below $46.875 million, our ability to meet a debt service ratio covenant. If our calculated availability is less than $46.875 million, our debt service coverage ratio must be greater than 1.0. At June 30, 2020, our calculated availability under the Credit Agreement was $125.7 million; therefore, the debt service ratio covenant did not apply.

Failure to maintain calculated availability of at least $46.875 million and meet the debt service ratio covenant could materially impact the availability and interest rate of future borrowings. Our debt service coverage ratio could be materially impacted by negative economic trends, including the negative trends caused by the COVID-19 pandemic. To make certain permitted payments as defined under the Credit Agreement, including but not limited to acquisitions and dividends, we must meet defined availability thresholds ranging from $37.5 million to $46.875 million, and a defined debt service coverage ratio of 1.15.

We were also in compliance with the other covenants contained in the revolving credit facility as of June 30, 2020. While we expect to remain in compliance throughout 2020, declines in sales volumes in the future, including further declines caused by the COVID-19 pandemic, could adversely impact our ability to remain in compliance with certain of these financial covenants. Additionally, to the extent our customers are adversely affected by declines in the economy in general, including the decline caused by the COVID-19 pandemic, they may be unable to pay their accounts payable to us on a timely basis or at all,

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which could make our accounts receivable ineligible for purposes of the revolving credit facility and could reduce our borrowing base and our ability to borrow under such facility.

Dividends

The Company paid dividends to shareholders of $1.6 million during the six months ended June 30, 2020. To preserve liquidity in response to the pandemic, the Company has suspended paying a quarterly dividend to our common shareholders.

Seasonality; Variability of Operating Results

The timing of orders placed by our customers has varied with, among other factors, orders for customers’ finished goods, customer production schedules, competitive conditions and general economic conditions. The variability of the level and timing of orders has, from time to time, resulted in significant periodic and quarterly fluctuations in the operations of our businesses. Such variability is particularly evident in our capital equipment business, included in the Engineered Products segment, which typically ships large systems at a relatively lower pace than our other businesses.

Critical Accounting Policies

Our critical accounting policies are described in "Item. 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations," and in the notes to our consolidated financial statements for the year ended December 31, 2019, both contained in our Annual Report on Form 10-K for the year ended December 31, 2019. There were no new critical accounting policies or updates to existing critical accounting policies as a result of new accounting pronouncements in this Quarterly Report on Form 10-Q.

The application of our critical accounting policies may require management to make judgments and estimates about the amounts reflected in the condensed consolidated financial statements. Management uses historical experience and all available information to make these estimates and judgments, and different amounts could be reported using different assumptions and estimates.

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains certain statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. The words “believes”, “anticipates”, “plans”, “expects”, “intends”, “estimates” and similar expressions are intended to identify forward-looking statements.

These forward-looking statements, including statements regarding future performance of the Company, that are subject to

known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements, or

industry results, to be materially different from any future results, performance or achievements expressed or implied by such

forward-looking statements. These factors that could cause actual results to differ materially from expectations include, but are

not limited to, the following: the ultimate impact the COVID-19 pandemic has on our business, results of operations, financial position and liquidity; our substantial indebtedness; the uncertainty of the global economic environment; general business conditions and competitive factors, including pricing pressures and product innovation; demand for our products and

services; the impact of labor disturbances affecting our customers; raw material availability and pricing; fluctuations in energy

costs; component part availability and pricing; changes in our relationships with customers and suppliers; the financial

condition of our customers, including the impact of any bankruptcies; our ability to successfully integrate recent and future

acquisitions into existing operations; the amounts and timing, if any, of purchases of our common stock; changes in general

economic conditions such as inflation rates, interest rates, tax rates, unemployment rates, higher labor and healthcare costs,

recessions and changing government policies, laws and regulations, including those related to the current global uncertainties

and crises, such as tariffs and surcharges; adverse impacts to us, our suppliers and customers from acts of terrorism or

hostilities; public health issues, including the outbreak of COVID-19 and its impact on our facilities and operations and our

customers and suppliers; our ability to meet various covenants, including financial covenants, contained in the agreements

governing our indebtedness; disruptions, uncertainties or volatility in the credit markets that may limit our access to capital;

potential disruption due to a partial or complete reconfiguration of the European Union; increasingly stringent domestic and

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foreign governmental regulations, including those affecting the environment or import and export controls and other trade

barriers; inherent uncertainties involved in assessing our potential liability for environmental remediation-related activities; the

outcome of pending and future litigation and other claims and disputes with customers; our dependence on the automotive and

heavy-duty truck industries, which are highly cyclical; the dependence of the automotive industry on consumer spending; our

ability to negotiate contracts with labor unions; our dependence on key management; our dependence on information systems;

our ability to continue to pay cash dividends, and the other factors we describe under “Item 1A. Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. In light of these and other uncertainties, the inclusion of a forward-looking statement herein should not be regarded as a representation by us that our plans and objectives will be achieved.

Item 3. Quantitative and Qualitative Disclosure About Market Risk

We are exposed to market risk, including changes in interest rates. As of June 30, 2020, we are subject to interest rate risk on borrowings under the floating rate revolving credit facility provided by our Credit Agreement. A 100-basis-point increase in the interest rate would have resulted in an increase in interest expense on these borrowings of approximately $0.9 million during the six-month period ended June 30, 2020.

Our foreign subsidiaries generally conduct business in local currencies. We face translation risks related to the changes in foreign currency exchange rates. Amounts invested in our foreign operations are translated in U.S. dollars at the exchange rates in effect at the balance sheet date. The resulting translation adjustments are recorded as a component of Accumulated other comprehensive loss in the Shareholders' equity section of the accompanying Condensed Consolidated Balance Sheets. Sales and expenses at our foreign operations are translated into U.S. dollars at the applicable monthly average exchange rates. Therefore, changes in exchange rates may either positively or negatively affect our net sales and expenses from foreign operations as expressed in U.S. dollars.

Our largest exposures to commodity prices relate to metal and natural gas prices, which have fluctuated widely in recent years. We do not have any commodity swap agreements, forward purchase or hedge contracts.

Item 4. Controls and Procedures

Evaluation of disclosure controls and procedures.

Under the supervision of and with the participation of our management, including our chief executive officer and chief financial officer, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15(d)-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report. Based on that evaluation, our chief executive officer and chief financial officer have concluded that, as of the end of the period covered by this Quarterly Report, our disclosure controls and procedures were effective.

Changes in internal control over financial reporting.

During the quarter ended June 30, 2020, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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Part II. Other Information

Item 1. Legal Proceedings

We are subject to various pending and threatened lawsuits in which claims for monetary damages are asserted in the ordinary course of business. While any litigation involves an element of uncertainty, in the opinion of management, liabilities, if any, arising from currently pending or threatened litigation are not expected to have a material adverse effect on our financial condition, liquidity or results of operations.

In addition to the routine lawsuits and asserted claims noted above, we were a party to the lawsuits and legal proceedings described below as of June 30, 2020:

We were a co-defendant in approximately 118 cases asserting claims on behalf of approximately 220 plaintiffs alleging personal injury as a result of exposure to asbestos. These asbestos cases generally relate to production and sale of asbestos-containing products and allege various theories of liability, including negligence, gross negligence and strict liability, and seek compensatory and, in some cases, punitive damages.

In every asbestos case in which we are named as a party, the complaints are filed against multiple named defendants. In substantially all of the asbestos cases, the plaintiffs either claim damages in excess of a specified amount, typically a minimum amount sufficient to establish jurisdiction of the court in which the case was filed (jurisdictional minimums generally range from $25,000 to $75,000), or do not specify the monetary damages sought. To the extent that any specific amount of damages is sought, the amount applies to claims against all named defendants.

There are three asbestos cases, involving 19 plaintiffs, that plead specified damages against named defendants. In each of the three cases, the plaintiff is seeking compensatory and punitive damages based on a variety of potentially alternative causes of action. In two cases, the plaintiff has alleged three counts at $3.0 million compensatory and punitive damages each; one count at $3.0 million compensatory and $1.0 million punitive damages; one count at $1.0 million. In the third case, the plaintiff has alleged compensatory and punitive damages, each in the amount of $20.0 million, for three separate causes of action, and $5.0 million compensatory damages for the fifth cause of action.

Historically, we have been dismissed from asbestos cases on the basis that the plaintiff incorrectly sued one of our subsidiaries or because the plaintiff failed to identify any asbestos-containing product manufactured or sold by us or our subsidiaries. We intend to vigorously defend these asbestos cases, and believe we will continue to be successful in being dismissed from such cases. However, it is not possible to predict the ultimate outcome of asbestos-related lawsuits, claims and proceedings due to the unpredictable nature of personal injury litigation. Despite this uncertainty, and although our results of operations and cash flows for a particular period could be adversely affected by asbestos-related lawsuits, claims and proceedings, management believes that the ultimate resolution of these matters will not have a material adverse effect on our financial condition, liquidity or results of operations. Among the factors management considered in reaching this conclusion were: (a) our historical success in being dismissed from these types of lawsuits on the bases mentioned above; (b) many cases have been improperly filed against one of our subsidiaries; (c) in many cases the plaintiffs have been unable to establish any causal relationship to us or our products or premises; (d) in many cases, the plaintiffs have been unable to demonstrate that they have suffered any identifiable injury or compensable loss at all or that any injuries that they have incurred did in fact result from alleged exposure to asbestos; and (e) the complaints assert claims against multiple defendants and, in most cases, the damages alleged are not attributed to individual defendants. Additionally, we do not believe that the amounts claimed in any of the asbestos cases are meaningful indicators of our potential exposure because the amounts claimed typically bear no relation to the extent of the plaintiff's injury, if any.

Our cost of defending these lawsuits has not been material to date and, based upon available information, our management does not expect its future costs for asbestos-related lawsuits to have a material adverse effect on our results of operations, liquidity or financial position.

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Item 1A. Risk Factors

In addition to the risk factors previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, the Company has also identified the following:

The COVID-19 outbreak has impacted and could in the future materially and adversely affect our business.

The novel strain of the coronavirus identified in China in late 2019 and now affecting the global community has impacted and is expected to continue to impact our operations, and the full nature and extent of the impact is highly uncertain and may be beyond our control. Among other things, uncertainties relating to COVID-19 include the duration of the outbreak, the severity of the virus, and the actions, or perception of actions that may be taken, to contain or treat its impact, by governments and others, including declarations of states of emergency, business closures, manufacturing restrictions and a prolonged period of travel, commercial and/or other similar restrictions and limitations.

As a result of COVID-19 and the measures implemented that are designed to contain its spread, our customers have been and could continue to be negatively impacted as a result of disruption in demand, which has negatively impacted our sales and had a material adverse effect on our business, results of operations and financial condition. Similarly, as a result of COVID-19 and measures implemented that are designed to contain its spread, our suppliers may not have the materials, capacity, or capability to enable the manufacture of our products according to our schedule and specifications. Because of impacts to suppliers' operations, we may need to seek alternate suppliers, which may be more expensive, may not be available or may result in delays in shipments to us and subsequently to our customers, each of which would affect our results of operations.

The COVID-19 pandemic has also disrupted our internal operations, including by heightening the risk that a significant portion of our workforce will suffer illness or otherwise not be permitted or be unable to work and exposing us to cyber and other risks associated with a large number of our employees working remotely. Certain of our facilities have experienced temporary work disruptions as a result of the COVID-19 pandemic, and we cannot predict whether these will continue or our facilities will experience more significant or frequent disruptions in the future. Furthermore, we may need to reduce our workforce as a result of declines in our business caused by the COVID-19 pandemic, and any such reduction would cause us to incur costs. Moreover, there can be no assurance that we would be able to rehire our workforce in the event our business experiences a subsequent recovery.

The impact of the COVID-19 pandemic continues to evolve and its duration and ultimate disruption to our customers and to our supply chain, and related financial impact to us, cannot be estimated at this time. Should such disruption continue for an extended period of time, the impact could have a more severe adverse effect on our business, results of operations and financial condition. Additionally, weaker economic conditions generally could result in impairment in value of our tangible or intangible assets, or our ability to raise additional capital, if needed.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The table below summarizes the information regarding our repurchases of the Company's common stock during the quarter ended June 30, 2020.

Period	Total Number of Shares Purchased		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans (1)	Maximum Number of Shares That May Yet Be Purchased Under the Plans or Program (1)
April 1 — April 30, 2020	25,078	(2)	$	19.13	24,032	795,141
May 1 — May 31, 2020	57,213	(2)	13.52		38,758	756,383
June 1 — June 30, 2020	103,858	(2)	15.73		86,586	669,797
Total	186,149		$	15.51	149,376	669,797

(1) On March 11, 2020, we announced a share repurchase program whereby we may repurchase up to 1.0 million shares of our outstanding common stock.

(2) Consists of an aggregate total of 36,773 shares of common stock we acquired from recipients of restricted stock awards at the time of vesting of such awards in order to settle recipient withholding tax liabilities.

Item 6. Exhibits

The following exhibits are included herein:

31.1	Principal Executive Officer’s Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Principal Financial Officer’s Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32	Certification requirement under Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

PARK-OHIO HOLDINGS CORP.
(Registrant)
By:	/s/ Patrick W. Fogarty
Name:	Patrick W. Fogarty
Title:	Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

Date: August 5, 2020

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EX-31.1

Exhibit 31.1

PRINCIPAL EXECUTIVE OFFICER’S CERTIFICATIONS

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Matthew V. Crawford, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Park-Ohio Holdings Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

By:	/s/ Matthew V. Crawford
Name:	Matthew V. Crawford
Title:	Chairman, Chief Executive Officer and President

Dated: August 5, 2020

EX-31.2

Exhibit 31.2

PRINCIPAL EXECUTIVE OFFICER’S CERTIFICATIONS

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Patrick W. Fogarty, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Park-Ohio Holdings Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

By:	/s/ Patrick W. Fogarty
Name:	Patrick W. Fogarty
Title:	Vice President and Chief Financial Officer

Dated: August 5, 2020

EX-32.1

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Park-Ohio Holdings Corp. (the “Company”) on Form 10-Q for the period ended June 30, 2020, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to such officer’s knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.

By:	/s/ Matthew V. Crawford
Name:	Matthew V. Crawford
Title:	Chairman, Chief Executive Officer and President
By:	/s/ Patrick W. Fogarty
Name:	Patrick W. Fogarty
Title:	Vice President and Chief Financial Officer

Dated: August 5, 2020

The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate disclosure document.

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Cover - shares	6 Months Ended
	Jun. 30, 2020	Jul. 31, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	000-03134
Entity Registrant Name	Park-Ohio Holdings Corp
Entity Incorporation, State or Country Code	OH
Entity Tax Identification Number	34-1867219
Entity Address, Address Line One	6065 Parkland Boulevard,
Entity Address, City or Town	Cleveland,
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	44124
City Area Code	440
Local Phone Number	947-2000
Title of 12(b) Security	Common Stock, Par Value $1.00 Per Share
Trading Symbol	PKOH
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		12,601,666
Entity Central Index Key	0000076282
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31

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Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 51.9	$ 56.0
Accounts receivable, net	196.0	261.3
Inventories, net	315.7	327.2
Prepaid and other current assets	87.4	81.2
Total current assets	651.0	725.7
Property, plant and equipment, net	228.8	237.6
Operating lease right-of-use assets	63.2	64.3
Goodwill	107.2	108.4
Intangible assets, net	86.8	90.6
Other long-term assets	84.4	83.8
Total assets	1,221.4	1,310.4
Current liabilities:
Trade accounts payable	128.0	175.0
Current portion of long-term debt and short-term debt	12.6	16.8
Current portion of operating lease liabilities	12.2	11.9
Accrued expenses and other	90.5	101.3
Total current liabilities	243.3	305.0
Long-term liabilities, less current portion:
Long-term debt	553.8	545.2
Long-term operating lease liabilities	52.1	53.6
Other long-term liabilities	56.0	57.0
Total long-term liabilities	661.9	655.8
Park-Ohio Holdings Corp. and Subsidiaries shareholders' equity	302.5	335.6
Noncontrolling interests	13.7	14.0
Total equity	316.2	349.6
Total liabilities and shareholders' equity	$ 1,221.4	$ 1,310.4

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Condensed Consolidated Statements of Income (Loss) (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
Net sales	$ 228.3	$ 415.3	$ 594.6	$ 835.4
Cost of sales	214.1	349.1	526.5	703.9
Gross profit	14.2	66.2	68.1	131.5
Selling, general and administrative expenses	35.1	46.9	76.0	89.7
Operating (loss) income	(20.9)	19.3	(7.9)	41.8
Other components of pension income and other postretirement benefits expense, net	1.8	1.5	3.6	2.8
Interest expense, net	(7.5)	(8.7)	(15.5)	(16.9)
(Loss) income before income taxes	(26.6)	12.1	(19.8)	27.7
Income tax benefit (expense)	9.6	(4.2)	4.1	(8.1)
Net (loss) income	(17.0)	7.9	(15.7)	19.6
Net loss (income) attributable to noncontrolling interests	0.4	(0.3)	0.3	(0.8)
Net (loss) income attributable to Park-Ohio Holdings Corp. common shareholders	$ (16.6)	$ 7.6	$ (15.4)	$ 18.8
(Loss) income per common share attributable to Park-Ohio Holdings Corp. common shareholders:
Basic (in dollars per share)	$ (1.38)	$ 0.62	$ (1.27)	$ 1.54
Diluted (in dollars per share)	$ (1.38)	$ 0.61	$ (1.27)	$ 1.51
Weighted-average shares used to compute (loss) income per share:
Basic (in shares)	12.1	12.2	12.2	12.2
Diluted (in shares)	12.1	12.4	12.2	12.4

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Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (17.0)	$ 7.9	$ (15.7)	$ 19.6
Other comprehensive (loss) income, net of tax:
Currency translation	2.9	(2.5)	(13.7)	(1.8)
Pension and other postretirement benefits	0.4	0.4	0.9	5.7
Total other comprehensive (loss) income	3.3	(2.1)	(12.8)	3.9
Total comprehensive (loss) income, net of tax	(13.7)	5.8	(28.5)	23.5
Comprehensive loss (income) attributable to noncontrolling interests	0.4	(0.3)	0.3	(0.8)
Comprehensive (loss) income attributable to Park-Ohio Holdings Corp. common shareholders	$ (13.3)	$ 5.5	$ (28.2)	$ 22.7

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Condensed Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($) $ in Millions	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive (Loss) Income	Noncontrolling Interest
Beginning balance (in shares) at Dec. 31, 2018		15,555,275
Beginning balance at Dec. 31, 2018	$ 312.6	$ 15.6	$ 125.7	$ 265.9	$ (67.3)	$ (40.9)	$ 13.6
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss)	17.7			11.2		6.0	0.5
Stock-based compensation expense	1.9		1.9
Stock-based compensation activity (in shares)		38,000
Stock-based compensation activity	0.0
Dividends	(1.9)			(1.6)			(0.3)
Payments of withholding taxes on share awards	(1.0)				(1.0)
Ending balance (in shares) at Mar. 31, 2019		15,593,275
Ending balance at Mar. 31, 2019	329.3	$ 15.6	127.6	275.5	(68.3)	(34.9)	13.8
Beginning balance (in shares) at Dec. 31, 2018		15,555,275
Beginning balance at Dec. 31, 2018	312.6	$ 15.6	125.7	265.9	(67.3)	(40.9)	13.6
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss)	23.5
Ending balance (in shares) at Jun. 30, 2019		15,517,725
Ending balance at Jun. 30, 2019	$ 330.2	$ 15.5	127.5	281.5	(71.0)	(37.0)	13.7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends per common share (in dollars per share)	$ 0.250
Beginning balance (in shares) at Mar. 31, 2019		15,593,275
Beginning balance at Mar. 31, 2019	$ 329.3	$ 15.6	127.6	275.5	(68.3)	(34.9)	13.8
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss)	5.8			7.6		(2.1)	0.3
Stock-based compensation expense	(0.2)		(0.2)
Stock-based compensation activity (in shares)		75,550
Stock-based compensation activity	0.0	$ (0.1)	0.1
Dividends	(2.0)			(1.6)			(0.4)
Purchases of treasury stock	(0.9)				(0.9)
Payments of withholding taxes on share awards	(1.8)				(1.8)
Ending balance (in shares) at Jun. 30, 2019		15,517,725
Ending balance at Jun. 30, 2019	$ 330.2	$ 15.5	127.5	281.5	(71.0)	(37.0)	13.7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends per common share (in dollars per share)	$ 0.125
Beginning balance (in shares) at Dec. 31, 2019		15,706,398
Beginning balance at Dec. 31, 2019	$ 349.6	$ 15.7	129.8	298.2	(71.1)	(37.0)	14.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss)	(14.8)			1.2		(16.1)	0.1
Stock-based compensation expense	1.4		1.4
Stock-based compensation activity (in shares)		1,000
Stock-based compensation activity	0.0
Dividends	(1.6)			(1.6)
Purchases of treasury stock	(2.9)				(2.9)
Payments of withholding taxes on share awards	(0.1)				(0.1)
Ending balance (in shares) at Mar. 31, 2020		15,707,398
Ending balance at Mar. 31, 2020	331.6	$ 15.7	131.2	297.8	(74.1)	(53.1)	14.1
Beginning balance (in shares) at Dec. 31, 2019		15,706,398
Beginning balance at Dec. 31, 2019	349.6	$ 15.7	129.8	298.2	(71.1)	(37.0)	14.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss)	(28.5)
Ending balance (in shares) at Jun. 30, 2020		15,991,391
Ending balance at Jun. 30, 2020	$ 316.2	$ 16.0	132.2	281.2	(77.1)	(49.8)	13.7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends per common share (in dollars per share)	$ 0.125
Beginning balance (in shares) at Mar. 31, 2020		15,707,398
Beginning balance at Mar. 31, 2020	$ 331.6	$ 15.7	131.2	297.8	(74.1)	(53.1)	14.1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss)	(13.7)			(16.6)		3.3	(0.4)
Stock-based compensation expense	1.3		1.3
Stock-based compensation activity (in shares)		283,993
Stock-based compensation activity	0.0	$ 0.3	(0.3)
Purchases of treasury stock	(2.4)				(2.4)
Payments of withholding taxes on share awards	(0.6)				(0.6)
Ending balance (in shares) at Jun. 30, 2020		15,991,391
Ending balance at Jun. 30, 2020	$ 316.2	$ 16.0	$ 132.2	$ 281.2	$ (77.1)	$ (49.8)	$ 13.7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends per common share (in dollars per share)	$ 0

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
OPERATING ACTIVITIES
Net (loss) income	$ (15.7)	$ 19.6
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	17.8	17.7
Stock-based compensation expense	2.7	1.7
Changes in operating assets and liabilities:
Accounts receivable	62.1	(20.9)
Inventories	7.9	(10.7)
Prepaid and other current assets	(6.5)	5.4
Accounts payable and accrued expenses	(57.2)	(6.5)
Other	(1.6)	(3.5)
Net cash provided by operating activities	9.5	2.8
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(9.4)	(20.7)
Proceeds from sale of an asset	1.4	0.0
Business acquisitions, net of cash acquired	0.0	(7.6)
Net cash used by investing activities	(8.0)	(28.3)
FINANCING ACTIVITIES
Proceeds from revolving credit facility, net	8.7	27.7
Payments on other debt	(6.7)	(2.8)
Proceeds from other debt	1.9	0.7
Payments on finance lease facilities, net	(0.6)	(3.2)
Dividends	(1.6)	(3.9)
Purchase of treasury shares	(5.3)	(0.9)
Payments of withholding taxes on share awards	(0.7)	(2.8)
Net cash (used) provided by financing activities	(4.3)	14.8
Effect of exchange rate changes on cash	(1.3)	0.3
Decrease in cash and cash equivalents	(4.1)	(10.4)
Cash and cash equivalents at beginning of period	56.0	55.7
Cash and cash equivalents at end of period	51.9	45.3
Interest paid	14.8	15.8
Income taxes paid	$ 1.2	$ 5.3

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Condensed Consolidated Statement of Shareholders' Equity (Unaudited) (Parenthetical) - shares	3 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019
Statement of Stockholders' Equity [Abstract]
Purchase of treasury stock (in shares)	149,376	180,827	27,069

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Basis of Presentation

6 Months Ended

Jun. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The condensed consolidated financial statements include the accounts of Park-Ohio Holdings Corp. and its subsidiaries (collectively, “we,” “our” or the “Company”). All intercompany accounts and transactions have been eliminated in consolidation.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three- and six- month periods ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The balance sheet at December 31, 2019 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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New Accounting Pronouncements

6 Months Ended

Jun. 30, 2020

Accounting Policies [Abstract]

New Accounting Pronouncements

New Accounting Pronouncements

Accounting Pronouncements Adopted

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments,” which replaced the current incurred loss impairment model with a methodology that reflected

expected credit losses. Under the new methodology, entities will measure expected credit losses on financial instruments held at amortized cost, including trade receivables, based on historical experience, current conditions and reasonable forecasts. The Company adopted this standard as of January 1, 2020. The adoption of the standard had an immaterial impact on the Company. For the three- and six-month periods ended June 30, 2020, the provision and write-offs were not material, and the allowance approximated $5.2 million as of June 30, 2020.

In December 2019, the FASB issued ASU 2019-12, “Income Taxes (ASC 740) - Simplifying the Accounting for Income Taxes,” which simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of ASC 740 by clarifying and amending existing guidance. The Company adopted this standard as of April 1, 2020. The adoption of the standard had an immaterial impact on the Company's tax provision.

Recent Accounting Pronouncements Not Yet Adopted

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which was issued in response to concerns about structural risks of interbank offered rates, and, particularly, the risk of cessation of the London Interbank Offered Rate. The guidance is effective upon issuance and may be adopted on any date on or after March 12, 2020. However, the relief is temporary and generally cannot be applied to contract modifications that occur after December 31, 2022 or hedging relationships entered into or evaluated after that date. The Company is currently evaluating the expected impact of this standard.

No other recently issued ASUs are expected to have a material impact on our results of operations, financial condition or liquidity.

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Revenue

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

We disaggregate our revenue by product line and geographic region of our customer, as we believe these best depict how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by economic factors. See details in the tables below.

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	(In millions)
PRODUCT LINE
Supply Technologies	$	86.0	$	141.0	$	207.9	$	285.8
Engineered specialty fasteners and other products	8.4		20.5		27.3		41.0
Supply Technologies Segment	94.4		161.5		235.2		326.8
Fuel, rubber and plastic products	39.8		91.1		124.5		180.7
Aluminum products	15.1		45.2		58.6		93.9
Assembly Components Segment	54.9		136.3		183.1		274.6
Industrial equipment	53.4		80.7		119.5		161.3
Forged and machined products	25.6		36.8		56.8		72.7
Engineered Products Segment	79.0		117.5		176.3		234.0
Total revenues	$	228.3	$	415.3	$	594.6	$	835.4

	Supply Technologies Segment		Assembly Components Segment		Engineered Products Segment		Total Revenues
	(In millions)
Three Months Ended June 30, 2020
GEOGRAPHIC REGION
United States	$	61.3	$	36.1	$	45.5	$	142.9
Europe	14.0		2.2		10.6		26.8
Asia	11.7		6.4		17.7		35.8
Mexico	5.0		3.6		1.3		9.9
Canada	1.6		6.5		2.7		10.8
Other	0.8		0.1		1.2		2.1
Total	$	94.4	$	54.9	$	79.0	$	228.3
Three Months Ended June 30, 2019
GEOGRAPHIC REGION
United States	$	110.6	$	97.0	$	67.9	$	275.5
Europe	24.2		3.8		20.4		48.4
Asia	9.5		4.0		15.8		29.3
Mexico	13.4		10.6		3.4		27.4
Canada	3.3		20.5		6.6		30.4
Other	0.5		0.4		3.4		4.3
Total	$	161.5	$	136.3	$	117.5	$	415.3

	Supply Technologies Segment		Assembly Components Segment		Engineered Products Segment		Total Revenues
	(In millions)
Six Months Ended June 30, 2020
GEOGRAPHIC REGION
United States	$	151.3	$	126.8	$	98.7	$	376.8
Europe	37.7		6.4		26.3		70.4
Asia	21.2		10.7		33.5		65.4
Mexico	19.5		13.8		3.5		36.8
Canada	4.5		24.9		9.1		38.5
Other	1.0		0.5		5.2		6.7
Total	$	235.2	$	183.1	$	176.3	$	594.6
Six Months Ended June 30, 2019
GEOGRAPHIC REGION
United States	$	221.0	$	198.7	$	136.0	$	555.7
Europe	50.7		8.1		40.8		99.6
Asia	20.8		9.2		30.7		60.7
Mexico	27.1		19.6		6.4		53.1
Canada	6.5		38.2		14.2		58.9
Other	0.7		0.8		5.9		7.4
Total	$	326.8	$	274.6	$	234.0	$	835.4

For over time arrangements, contract liabilities primarily relate to advances or deposits received from the Company’s customers before revenue is recognized. These amounts, which totaled $35.9 million and $35.7 million at June 30, 2020 and December 31, 2019, respectively, are recorded in Accrued expenses and other in the Condensed Consolidated Balance Sheets.

For over time arrangements, contract assets primarily relate to revenue recognized in advance of billings to customers under long-term contracts accounted for under percentage of completion. These amounts, which totaled $65.4 million and $61.7 million at June 30, 2020 and December 31, 2019, respectively, are recorded in Prepaid and other current assets in the Condensed Consolidated Balance Sheets.

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Segments

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segments

Segments

Our operating segments are defined as components of the enterprise for which separate financial information is available and evaluated on a regular basis by our chief operating decision maker to allocate resources and assess performance.

For purposes of measuring business segment performance, the Company utilizes segment operating income, which is defined as revenues less expenses identifiable to the product lines within each segment. The Company does not allocate items that are non-operating; unusual in nature; or are corporate costs, which include but are not limited to executive and share-based compensation and corporate office costs. Segment operating income reconciles to consolidated income before income taxes by deducting corporate costs; certain non-cash and/or non-operating items; Other components of pension income and other postretirement benefits expense, net; and interest expense, net.

Results by business segment were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
	(In millions)
Net sales:
Supply Technologies	$	94.4		$	161.5		$	235.2		$	326.8
Assembly Components	54.9			136.3			183.1			274.6
Engineered Products	79.0			117.5			176.3			234.0
	$	228.3		$	415.3		$	594.6		$	835.4
Segment operating (loss) income:
Supply Technologies	$	0.3		$	11.3		$	9.5		$	24.4
Assembly Components	(14.6		)	8.3			(8.3		)	16.6
Engineered Products	(0.8		)	11.5			3.0			19.6
Total segment operating (loss) income	(15.1		)	31.1			4.2			60.6
Corporate costs	(5.8		)	(7.5		)	(12.1		)	(14.5		)
One-time net expense related to former President(a)	—			(4.3		)	—			(4.3		)
Operating (loss) income	(20.9		)	19.3			(7.9		)	41.8
Other components of pension income and other postretirement benefits expense, net	1.8			1.5			3.6			2.8
Interest expense, net	(7.5		)	(8.7		)	(15.5		)	(16.9		)
(Loss) income before income taxes	$	(26.6	)	$	12.1		$	(19.8	)	$	27.7
(a) - In June 2019, Edward F. Crawford, our President, retired and resigned to become the U.S. Ambassador to Ireland. In connection with his resignation, the Company incurred one-time net expense of $4.3 million, consisting of a $6.0 million payment and reversal of $1.7 million of previously-recorded expense related to restricted stock forfeitures.

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Plant Closure and Consolidation

6 Months Ended

Jun. 30, 2020

Restructuring and Related Activities [Abstract]

Plant Closure and Consolidation

Plant Closure and Consolidation

In the first six months of 2020, the Company recorded charges totaling $2.3 million in its Assembly Components segment in connection with commencement of actions to close and consolidate its extrusion operations in Tennessee and its fuel operations in Shanghai, China, and to complete other cost-reduction actions in this segment.  The charges, which are included in cost of sales in the Condensed Consolidated Statements of Income (Loss), are comprised of severance and related employee costs of $1.2 million, asset impairment of $0.5 million, and other facility costs of $0.6 million.  The Company expects to incur additional costs related to these initiatives of approximately $1.7 million in the remainder of 2020.

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Acquisition

6 Months Ended

Jun. 30, 2020

Business Combinations [Abstract]

Acquisition

AcquisitionOn May 31, 2019, the Company acquired EFCO, Inc. d/b/a Erie Press Systems (“EP”) for $8.1 million in cash, of which $7.6 million was paid at closing and $0.5 million was paid in the third quarter of 2019.  The purchase price allocation for EP was finalized as of December 31, 2019. The purchase agreement stipulates potential contingent consideration of up to an additional $1.0 million based on two-year cumulative earnings before interest and taxes. The estimated fair value of the contingent consideration, valued using level 3 inputs, was approximately $1.0 million as of June 30, 2020.

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Inventories

6 Months Ended

Jun. 30, 2020

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories, net consist of the following:

	June 30, 2020		December 31, 2019
	(In millions)
Raw materials and supplies	$	93.7	$	92.6
Work in process	51.6		51.3
Finished goods	168.4		181.3
LIFO reserve	2.0		2.0
Inventories, net	$	315.7	$	327.2

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Accrued Warranty Costs

6 Months Ended

Jun. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

Accrued Warranty Costs

Accrued Warranty Costs

The Company estimates warranty claims that may be incurred based on current and historical data of products sold. Actual warranty expense could differ from the estimates made by the Company based on product performance. The following table presents changes in the Company’s product warranty liability for the three months and six months ended June 30, 2020 and 2019:

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
	(In millions)
Beginning balance	$	6.8		$	6.7		$	6.4		$	6.2
Claims paid	(0.4		)	(0.8		)	(0.6		)	(1.6		)
Warranty expense	0.1			1.2			0.7			2.5
Ending balance	$	6.5		$	7.1		$	6.5		$	7.1

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Income Taxes

6 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company’s tax provision for interim periods is determined using an estimate of its annual effective rate, adjusted for discrete items, if any, in each period.

On March 27, 2020, the President of the United States signed the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, a substantial tax-and-spending package intended to provide additional economic stimulus to address the impact of the COVID-19 pandemic.  Significant impacts of the CARES Act include the ability to carry back a net operating loss for five years and an increase of the Internal Revenue Code Section 163(j) interest expense disallowance limitations from 30% to 50% of adjusted taxable income, which will allow the Company to deduct additional interest expense for the 2019 and 2020 tax years.  The Company is assessing the potential impact of global relief packages and the CARES Act, including the effect upon the Company’s 2019 income tax return to be filed later in 2020, as well as the 2020 tax provision. Management continues to evaluate various impacts of the CARES Act.

Income tax benefit for the three months ended June 30, 2020 was $9.6 million, representing an effective rate of 36.1%, compared to income tax expense of $4.2 million, or 34.3%, for the three months ended June 30, 2019. The rate in the 2020 period is higher than the U.S. statutory rate of 21% due primarily to a U.S. net operating loss carryback to a prior year under the CARES Act. The rate in the 2019 period is higher than the U.S. statutory rate due to the impact of the $6.0 million one-time, non-deductible payment related to the resignation of the Company's former President.

Income tax benefit for the six months ended June 30, 2020 was $4.1 million, representing an effective rate of 20.7%, compared to income tax expense of $8.1 million, or 29.2%, for the six months ended June 30, 2019. The rate in the 2019 period includes the $6.0 million one-time, non-deductible payment mentioned above.

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Financing Arrangements

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Financing Arrangements

Financing Arrangements

Debt consists of the following:

				Carrying Value at
	Maturity Date	Interest Rate at June 30, 2020		June 30, 2020			December 31, 2019
				(In millions)
Senior Notes	April 15, 2027	6.625	%	$	350.0		$	350.0
Revolving credit facility	November 26, 2024	1.37	%	181.3			173.2
Industrial Equipment Group European Facilities	December 21, 2021	3.25	%	—			4.6
Finance Leases	Various	Various		16.7			17.2
Other	Various	Various		24.3			23.5
Total debt				572.3			568.5
Less current portion of long-term debt and short-term debt				(12.6		)	(16.8		)
Less unamortized debt issuance costs				(5.9		)	(6.5		)
Total long-term debt, net				$	553.8		$	545.2

In 2018, Park-Ohio Industries, Inc. (“Park-Ohio”), the operating subsidiary of Park-Ohio Holdings Corp., entered into Amendment No. 1 to Seventh Amended and Restated Credit Agreement (the “Credit Agreement”) with a group of banks to increase the availability under the revolving credit facility from $350.0 million to $375.0 million, the Canadian revolving subcommitment from $35.0 million to $40.0 million and the European revolving subcommitment from $25.0 million to $30.0 million. Furthermore, Park-Ohio has the option, pursuant to the Credit Agreement, to increase the availability under the revolving credit facility by an aggregate incremental amount up to $100.0 million. In 2019, Park-Ohio entered into Amendment No. 4 to the Credit Agreement, extending the maturity of the Credit Agreement to November 26, 2024.

We had outstanding bank guarantees and letters of credit of approximately $30.6 million at June 30, 2020 and $33.8 million at December 31, 2019 under the Credit Agreement.

In 2017, Park-Ohio completed the issuance, in a private placement, of $350.0 million aggregate principal amount of 6.625% Senior Notes due 2027 (the “Notes”). The Notes are unsecured senior obligations of Park-Ohio and are guaranteed on an unsecured senior basis by the 100% owned material domestic subsidiaries of Park-Ohio.

In 2016, the Company, through its subsidiary, IEGE Industrial Equipment Holding Company Limited, entered into a financing agreement with Banco Bilbao Vizcaya Argentaria, S.A. The financing agreement provides the Company a loan up to $28.0 million as of June 30, 2020, as well as a revolving credit facility for up to $11.2 million to fund working capital and general corporate needs. No amounts were outstanding under the loan agreement or the revolving credit facility as of June 30, 2020.

In 2015, the Company entered into a finance lease agreement (the “Lease Agreement”). The Lease Agreement provides the Company up to $50.0 million for finance leases. Finance lease obligations of $16.7 million were borrowed under the Lease Agreement to acquire machinery and equipment as of June 30, 2020.

In 2015, the Company, through its Southwest Steel Processing LLC subsidiary, entered into a financing agreement with the Arkansas Development Finance Authority. The financing agreement provides the Company the ability to borrow up to $11.0 million for expansion of its manufacturing facility in Arkansas. The financing agreement matures in September 2025. The

Company had $7.8 million of borrowings outstanding under this agreement as of June 30, 2020, which is included in Other above.

The following table represents fair value information of the Notes, classified as Level 1 using estimated quoted market prices.

	June 30, 2020		December 31, 2019
	(In millions)
Carrying amount	$	350.0	$	350.0
Fair value	$	288.9	$	358.3

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation

A summary of restricted share activity for the six months ended June 30, 2020 is as follows:

	2020
	Time-Based				Performance-Based
	Number of Shares		Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
	(In whole shares)				(In whole shares)
Outstanding - beginning of year	471,634		$	32.06	50,000	$	32.55
Granted(a)	296,093		17.73		—	—
Vested	(131,038	)	37.48		—	—
Canceled or expired	(5,000	)	37.55		—	—
Outstanding - end of period	631,689		$	24.11	50,000	$	32.55

(a) - Included in the granted amount are 6,100 restricted share units.

Stock-based compensation is included in Selling, general and administrative expenses in the consolidated statements of (loss) income. Total stock-based compensation expense (benefit) for the three months ended June 30, 2020 and 2019 was $1.3 million and $(0.2) million, respectively. Total stock-based compensation expense for the six months ended June 30, 2020 and 2019 was $2.7 million and $1.7 million, respectively. As of June 30, 2020, there was $11.0 million of unrecognized compensation cost related to non-vested stock-based compensation, which cost is expected to be recognized over a weighted-average period of 2.4 years.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

The Company is subject to various pending and threatened legal proceedings arising in the ordinary course of business. The Company records a liability for loss contingencies in the consolidated financial statements when a loss is known or considered probable and the amount can be reasonably estimated. Our provisions are based on historical experience, current information and legal advice, and they may be adjusted in the future based on new developments. Estimating probable losses requires the analysis of multiple forecasted factors that often depend on judgments and potential actions by third parties. Although it is not possible to predict with certainty the ultimate outcome or cost of these matters, the Company believes they will not have a material adverse effect on our consolidated financial statements.

Our subsidiaries are involved in a number of contractual and warranty-related disputes. We believe that appropriate liabilities for these contingencies have been recorded; however, actual results may differ materially from our estimates.

In addition to the routine lawsuits and asserted claims noted above, we are also a co-defendant in approximately 118 cases asserting claims on behalf of approximately 220 plaintiffs alleging personal injury as a result of exposure to asbestos. In every

asbestos case in which we are named as a party, the complaints are filed against multiple named defendants. Historically, we have been dismissed from asbestos cases.  We intend to vigorously defend these cases and believe we will continue to be successful in being dismissed from such cases. 

While it is not possible to predict the ultimate outcome of asbestos-related lawsuits, claims and proceedings due to the unpredictable nature of personal injury litigation, and although our results of operations and cash flows for a particular period could be adversely affected by asbestos-related lawsuits, claims and proceedings, management believes that the ultimate resolution of these matters will not have a material adverse effect on our financial condition, liquidity or results of operations.

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Pension and Postretirement Benefits

6 Months Ended

Jun. 30, 2020

Retirement Benefits [Abstract]

Pension and Postretirement Benefits

Pension and Postretirement Benefits

The components of net periodic benefit (income) costs recognized for the three months and six months ended June 30, 2020 and 2019 were as follows:

	Pension Benefits												Postretirement Benefits
	Three Months Ended June 30,						Six Months Ended June 30,						Three Months Ended June 30,				Six Months Ended June 30,
	2020			2019			2020			2019			2020		2019		2020		2019
	(In millions)
Service costs	$	1.1		$	0.9		$	2.2		$	1.8		$	—	$	—	$	—	$	—
Interest costs	0.6			0.6			1.1			1.3			0.1		—		0.1		0.1
Expected return on plan assets	(2.9		)	(2.7		)	(5.8		)	(5.4		)	—		—		—		—
Recognized net actuarial loss	0.5			0.5			1.0			1.1			—		0.1		0.1		0.1
Net periodic benefit (income) expense	$	(0.7	)	$	(0.7	)	$	(1.5	)	$	(1.2	)	$	0.1	$	0.1	$	0.2	$	0.2

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Accumulated Other Comprehensive (Loss) Income

6 Months Ended

Jun. 30, 2020

Equity [Abstract]

Accumulated Other Comprehensive (Loss) Income

Accumulated Other Comprehensive (Loss) Income

The components of and changes in accumulated other comprehensive loss for the three and six months ended June 30, 2020 and 2019 were as follows:

	Cumulative Translation Adjustment			Pension and Postretirement Benefits			Total			Cumulative Translation Adjustment			Pension and Postretirement Benefits			Total
	(In millions)
	Three Months Ended June 30, 2020									Three Months Ended June 30, 2019
Beginning balance	$	(39.0	)	$	(14.1	)	$	(53.1	)	$	(20.6	)	$	(14.3	)	$	(34.9	)
Currency translation (a)	2.9			—			2.9			(2.5		)	—			(2.5		)
Pension and OPEB activity, net of tax	—			0.4			0.4			—			0.4			0.4
Ending balance	$	(36.1	)	$	(13.7	)	$	(49.8	)	$	(23.1	)	$	(13.9	)	$	(37.0	)
	Six Months Ended June 30, 2020									Six Months Ended June 30, 2019
Beginning balance	$	(22.4	)	$	(14.6	)	$	(37.0	)	$	(21.3	)	$	(19.6	)	$	(40.9	)
Currency translation (a)	(13.7		)	—			(13.7		)	(1.8		)	—			(1.8		)
Pension and OPEB activity, net of tax	—			0.9			0.9			—			5.7			5.7
Ending balance	$	(36.1	)	$	(13.7	)	$	(49.8	)	$	(23.1	)	$	(13.9	)	$	(37.0	)

(a)

No income taxes were provided on currency translation as foreign earnings are considered permanently reinvested.

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Weighted-Average Number of Shares Used in Computing Earnings Per Share

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Weighted-Average Number of Shares Used in Computing Earnings Per Share

Weighted-Average Number of Shares Used in Computing Earnings Per Share

The following table sets forth the weighted-average number of shares used in the computation of earnings per share:

	Three Months Ended June 30,		Six Months Ended June 30,
	2020	2019	2020	2019
	(In millions)
Weighted-average basic shares outstanding	12.1	12.2	12.2	12.2
Plus: Dilutive impact of employee stock awards	—	0.2	—	0.2
Weighted-average diluted shares outstanding	12.1	12.4	12.2	12.4

Certain restricted stock awards are anti-dilutive and therefore excluded from the computation of diluted earnings per share. Anti-dilutive shares were 0.3 million and 0.0 million for the three months ended June 30, 2020 and 2019, respectively. Anti-dilutive shares were 0.3 million and 0.0 million for the six months ended June 30, 2020 and 2019, respectively.

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New Accounting Pronouncements (Policies)

6 Months Ended

Jun. 30, 2020

Accounting Policies [Abstract]

Basis of Presentation

The condensed consolidated financial statements include the accounts of Park-Ohio Holdings Corp. and its subsidiaries (collectively, “we,” “our” or the “Company”). All intercompany accounts and transactions have been eliminated in consolidation.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three- and six- month periods ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The balance sheet at December 31, 2019 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Accounting Pronouncements Adopted and Not Yet Adopted

Accounting Pronouncements Adopted

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments,” which replaced the current incurred loss impairment model with a methodology that reflected

expected credit losses. Under the new methodology, entities will measure expected credit losses on financial instruments held at amortized cost, including trade receivables, based on historical experience, current conditions and reasonable forecasts. The Company adopted this standard as of January 1, 2020. The adoption of the standard had an immaterial impact on the Company. For the three- and six-month periods ended June 30, 2020, the provision and write-offs were not material, and the allowance approximated $5.2 million as of June 30, 2020.

In December 2019, the FASB issued ASU 2019-12, “Income Taxes (ASC 740) - Simplifying the Accounting for Income Taxes,” which simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of ASC 740 by clarifying and amending existing guidance. The Company adopted this standard as of April 1, 2020. The adoption of the standard had an immaterial impact on the Company's tax provision.

Recent Accounting Pronouncements Not Yet Adopted

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which was issued in response to concerns about structural risks of interbank offered rates, and, particularly, the risk of cessation of the London Interbank Offered Rate. The guidance is effective upon issuance and may be adopted on any date on or after March 12, 2020. However, the relief is temporary and generally cannot be applied to contract modifications that occur after December 31, 2022 or hedging relationships entered into or evaluated after that date. The Company is currently evaluating the expected impact of this standard.

Segments

Our operating segments are defined as components of the enterprise for which separate financial information is available and evaluated on a regular basis by our chief operating decision maker to allocate resources and assess performance.

For purposes of measuring business segment performance, the Company utilizes segment operating income, which is defined as revenues less expenses identifiable to the product lines within each segment. The Company does not allocate items that are non-operating; unusual in nature; or are corporate costs, which include but are not limited to executive and share-based compensation and corporate office costs. Segment operating income reconciles to consolidated income before income taxes by deducting corporate costs; certain non-cash and/or non-operating items; Other components of pension income and other postretirement benefits expense, net; and interest expense, net.

Accrued Warranty Costs

The Company estimates warranty claims that may be incurred based on current and historical data of products sold. Actual warranty expense could differ from the estimates made by the Company based on product performance.

Income Taxes

The Company’s tax provision for interim periods is determined using an estimate of its annual effective rate, adjusted for discrete items, if any, in each period.

On March 27, 2020, the President of the United States signed the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, a substantial tax-and-spending package intended to provide additional economic stimulus to address the impact of the COVID-19 pandemic.  Significant impacts of the CARES Act include the ability to carry back a net operating loss for five years and an increase of the Internal Revenue Code Section 163(j) interest expense disallowance limitations from 30% to 50% of adjusted taxable income, which will allow the Company to deduct additional interest expense for the 2019 and 2020 tax years.  The Company is assessing the potential impact of global relief packages and the CARES Act, including the effect upon the Company’s 2019 income tax return to be filed later in 2020, as well as the 2020 tax provision. Management continues to evaluate various impacts of the CARES Act.

Commitments and Contingencies

The Company is subject to various pending and threatened legal proceedings arising in the ordinary course of business. The Company records a liability for loss contingencies in the consolidated financial statements when a loss is known or considered probable and the amount can be reasonably estimated. Our provisions are based on historical experience, current information and legal advice, and they may be adjusted in the future based on new developments. Estimating probable losses requires the analysis of multiple forecasted factors that often depend on judgments and potential actions by third parties. Although it is not possible to predict with certainty the ultimate outcome or cost of these matters, the Company believes they will not have a material adverse effect on our consolidated financial statements.

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Revenue (Tables)

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Schedule of disaggregation of revenue

We disaggregate our revenue by product line and geographic region of our customer, as we believe these best depict how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by economic factors. See details in the tables below.

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	(In millions)
PRODUCT LINE
Supply Technologies	$	86.0	$	141.0	$	207.9	$	285.8
Engineered specialty fasteners and other products	8.4		20.5		27.3		41.0
Supply Technologies Segment	94.4		161.5		235.2		326.8
Fuel, rubber and plastic products	39.8		91.1		124.5		180.7
Aluminum products	15.1		45.2		58.6		93.9
Assembly Components Segment	54.9		136.3		183.1		274.6
Industrial equipment	53.4		80.7		119.5		161.3
Forged and machined products	25.6		36.8		56.8		72.7
Engineered Products Segment	79.0		117.5		176.3		234.0
Total revenues	$	228.3	$	415.3	$	594.6	$	835.4

Revenue by geographic areas

	Supply Technologies Segment		Assembly Components Segment		Engineered Products Segment		Total Revenues
	(In millions)
Three Months Ended June 30, 2020
GEOGRAPHIC REGION
United States	$	61.3	$	36.1	$	45.5	$	142.9
Europe	14.0		2.2		10.6		26.8
Asia	11.7		6.4		17.7		35.8
Mexico	5.0		3.6		1.3		9.9
Canada	1.6		6.5		2.7		10.8
Other	0.8		0.1		1.2		2.1
Total	$	94.4	$	54.9	$	79.0	$	228.3
Three Months Ended June 30, 2019
GEOGRAPHIC REGION
United States	$	110.6	$	97.0	$	67.9	$	275.5
Europe	24.2		3.8		20.4		48.4
Asia	9.5		4.0		15.8		29.3
Mexico	13.4		10.6		3.4		27.4
Canada	3.3		20.5		6.6		30.4
Other	0.5		0.4		3.4		4.3
Total	$	161.5	$	136.3	$	117.5	$	415.3

	Supply Technologies Segment		Assembly Components Segment		Engineered Products Segment		Total Revenues
	(In millions)
Six Months Ended June 30, 2020
GEOGRAPHIC REGION
United States	$	151.3	$	126.8	$	98.7	$	376.8
Europe	37.7		6.4		26.3		70.4
Asia	21.2		10.7		33.5		65.4
Mexico	19.5		13.8		3.5		36.8
Canada	4.5		24.9		9.1		38.5
Other	1.0		0.5		5.2		6.7
Total	$	235.2	$	183.1	$	176.3	$	594.6
Six Months Ended June 30, 2019
GEOGRAPHIC REGION
United States	$	221.0	$	198.7	$	136.0	$	555.7
Europe	50.7		8.1		40.8		99.6
Asia	20.8		9.2		30.7		60.7
Mexico	27.1		19.6		6.4		53.1
Canada	6.5		38.2		14.2		58.9
Other	0.7		0.8		5.9		7.4
Total	$	326.8	$	274.6	$	234.0	$	835.4

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Segments (Tables)

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Schedule of results by business segment

Results by business segment were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
	(In millions)
Net sales:
Supply Technologies	$	94.4		$	161.5		$	235.2		$	326.8
Assembly Components	54.9			136.3			183.1			274.6
Engineered Products	79.0			117.5			176.3			234.0
	$	228.3		$	415.3		$	594.6		$	835.4
Segment operating (loss) income:
Supply Technologies	$	0.3		$	11.3		$	9.5		$	24.4
Assembly Components	(14.6		)	8.3			(8.3		)	16.6
Engineered Products	(0.8		)	11.5			3.0			19.6
Total segment operating (loss) income	(15.1		)	31.1			4.2			60.6
Corporate costs	(5.8		)	(7.5		)	(12.1		)	(14.5		)
One-time net expense related to former President(a)	—			(4.3		)	—			(4.3		)
Operating (loss) income	(20.9		)	19.3			(7.9		)	41.8
Other components of pension income and other postretirement benefits expense, net	1.8			1.5			3.6			2.8
Interest expense, net	(7.5		)	(8.7		)	(15.5		)	(16.9		)
(Loss) income before income taxes	$	(26.6	)	$	12.1		$	(19.8	)	$	27.7
(a) - In June 2019, Edward F. Crawford, our President, retired and resigned to become the U.S. Ambassador to Ireland. In connection with his resignation, the Company incurred one-time net expense of $4.3 million, consisting of a $6.0 million payment and reversal of $1.7 million of previously-recorded expense related to restricted stock forfeitures.

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Inventories (Tables)

6 Months Ended

Jun. 30, 2020

Inventory Disclosure [Abstract]

Schedule of inventories

Inventories, net consist of the following:

	June 30, 2020		December 31, 2019
	(In millions)
Raw materials and supplies	$	93.7	$	92.6
Work in process	51.6		51.3
Finished goods	168.4		181.3
LIFO reserve	2.0		2.0
Inventories, net	$	315.7	$	327.2

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Accrued Warranty Costs (Tables)

6 Months Ended

Jun. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

Schedule of changes in product warranty liability

The following table presents changes in the Company’s product warranty liability for the three months and six months ended June 30, 2020 and 2019:

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
	(In millions)
Beginning balance	$	6.8		$	6.7		$	6.4		$	6.2
Claims paid	(0.4		)	(0.8		)	(0.6		)	(1.6		)
Warranty expense	0.1			1.2			0.7			2.5
Ending balance	$	6.5		$	7.1		$	6.5		$	7.1

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Financing Arrangements (Tables)

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Schedule of long-term debt

Debt consists of the following:

				Carrying Value at
	Maturity Date	Interest Rate at June 30, 2020		June 30, 2020			December 31, 2019
				(In millions)
Senior Notes	April 15, 2027	6.625	%	$	350.0		$	350.0
Revolving credit facility	November 26, 2024	1.37	%	181.3			173.2
Industrial Equipment Group European Facilities	December 21, 2021	3.25	%	—			4.6
Finance Leases	Various	Various		16.7			17.2
Other	Various	Various		24.3			23.5
Total debt				572.3			568.5
Less current portion of long-term debt and short-term debt				(12.6		)	(16.8		)
Less unamortized debt issuance costs				(5.9		)	(6.5		)
Total long-term debt, net				$	553.8		$	545.2

Schedule of fair value of debt

The following table represents fair value information of the Notes, classified as Level 1 using estimated quoted market prices.

	June 30, 2020		December 31, 2019
	(In millions)
Carrying amount	$	350.0	$	350.0
Fair value	$	288.9	$	358.3

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Schedule of restricted share and performance share activity

A summary of restricted share activity for the six months ended June 30, 2020 is as follows:

	2020
	Time-Based				Performance-Based
	Number of Shares		Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
	(In whole shares)				(In whole shares)
Outstanding - beginning of year	471,634		$	32.06	50,000	$	32.55
Granted(a)	296,093		17.73		—	—
Vested	(131,038	)	37.48		—	—
Canceled or expired	(5,000	)	37.55		—	—
Outstanding - end of period	631,689		$	24.11	50,000	$	32.55

(a) - Included in the granted amount are 6,100 restricted share units.

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Pension and Postretirement Benefits (Tables)

6 Months Ended

Jun. 30, 2020

Retirement Benefits [Abstract]

Schedule of net periodic benefit cost

The components of net periodic benefit (income) costs recognized for the three months and six months ended June 30, 2020 and 2019 were as follows:

	Pension Benefits												Postretirement Benefits
	Three Months Ended June 30,						Six Months Ended June 30,						Three Months Ended June 30,				Six Months Ended June 30,
	2020			2019			2020			2019			2020		2019		2020		2019
	(In millions)
Service costs	$	1.1		$	0.9		$	2.2		$	1.8		$	—	$	—	$	—	$	—
Interest costs	0.6			0.6			1.1			1.3			0.1		—		0.1		0.1
Expected return on plan assets	(2.9		)	(2.7		)	(5.8		)	(5.4		)	—		—		—		—
Recognized net actuarial loss	0.5			0.5			1.0			1.1			—		0.1		0.1		0.1
Net periodic benefit (income) expense	$	(0.7	)	$	(0.7	)	$	(1.5	)	$	(1.2	)	$	0.1	$	0.1	$	0.2	$	0.2

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Accumulated Other Comprehensive (Loss) Income (Tables)

6 Months Ended

Jun. 30, 2020

Equity [Abstract]

Schedule of changes in accumulated comprehensive loss

The components of and changes in accumulated other comprehensive loss for the three and six months ended June 30, 2020 and 2019 were as follows:

	Cumulative Translation Adjustment			Pension and Postretirement Benefits			Total			Cumulative Translation Adjustment			Pension and Postretirement Benefits			Total
	(In millions)
	Three Months Ended June 30, 2020									Three Months Ended June 30, 2019
Beginning balance	$	(39.0	)	$	(14.1	)	$	(53.1	)	$	(20.6	)	$	(14.3	)	$	(34.9	)
Currency translation (a)	2.9			—			2.9			(2.5		)	—			(2.5		)
Pension and OPEB activity, net of tax	—			0.4			0.4			—			0.4			0.4
Ending balance	$	(36.1	)	$	(13.7	)	$	(49.8	)	$	(23.1	)	$	(13.9	)	$	(37.0	)
	Six Months Ended June 30, 2020									Six Months Ended June 30, 2019
Beginning balance	$	(22.4	)	$	(14.6	)	$	(37.0	)	$	(21.3	)	$	(19.6	)	$	(40.9	)
Currency translation (a)	(13.7		)	—			(13.7		)	(1.8		)	—			(1.8		)
Pension and OPEB activity, net of tax	—			0.9			0.9			—			5.7			5.7
Ending balance	$	(36.1	)	$	(13.7	)	$	(49.8	)	$	(23.1	)	$	(13.9	)	$	(37.0	)

(a)

No income taxes were provided on currency translation as foreign earnings are considered permanently reinvested.

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Weighted-Average Number of Shares Used in Computing Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Schedule of weighted average number of shares used in computing earnings per share

The following table sets forth the weighted-average number of shares used in the computation of earnings per share:

	Three Months Ended June 30,		Six Months Ended June 30,
	2020	2019	2020	2019
	(In millions)
Weighted-average basic shares outstanding	12.1	12.2	12.2	12.2
Plus: Dilutive impact of employee stock awards	—	0.2	—	0.2
Weighted-average diluted shares outstanding	12.1	12.4	12.2	12.4

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New Accounting Pronouncements (Details) $ in Millions	Jun. 30, 2020 USD ($)
Accounting Policies [Abstract]
Accounts receivable, allowance for credit losses	$ 5.2

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Revenue (Summary of Disaggregation of Revenue by Product Line) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	$ 228.3	$ 415.3	$ 594.6	$ 835.4
Supply Technologies Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	94.4	161.5	235.2	326.8
Assembly Components Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	54.9	136.3	183.1	274.6
Engineered Products Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	79.0	117.5	176.3	234.0
Supply Technologies | Supply Technologies Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	86.0	141.0	207.9	285.8
Engineered specialty fasteners and other products | Supply Technologies Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	8.4	20.5	27.3	41.0
Fuel, rubber and plastic products | Assembly Components Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	39.8	91.1	124.5	180.7
Aluminum products | Assembly Components Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	15.1	45.2	58.6	93.9
Industrial equipment | Engineered Products Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	53.4	80.7	119.5	161.3
Forged and machined products | Engineered Products Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	$ 25.6	$ 36.8	$ 56.8	$ 72.7

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Revenue (Summary of Disaggregation of Revenue by Geographical Area) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	$ 228.3	$ 415.3	$ 594.6	$ 835.4
Supply Technologies Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	94.4	161.5	235.2	326.8
Assembly Components Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	54.9	136.3	183.1	274.6
Engineered Products Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	79.0	117.5	176.3	234.0
United States
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	142.9	275.5	376.8	555.7
United States | Supply Technologies Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	61.3	110.6	151.3	221.0
United States | Assembly Components Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	36.1	97.0	126.8	198.7
United States | Engineered Products Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	45.5	67.9	98.7	136.0
Europe
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	26.8	48.4	70.4	99.6
Europe | Supply Technologies Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	14.0	24.2	37.7	50.7
Europe | Assembly Components Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	2.2	3.8	6.4	8.1
Europe | Engineered Products Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	10.6	20.4	26.3	40.8
Asia
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	35.8	29.3	65.4	60.7
Asia | Supply Technologies Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	11.7	9.5	21.2	20.8
Asia | Assembly Components Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	6.4	4.0	10.7	9.2
Asia | Engineered Products Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	17.7	15.8	33.5	30.7
Mexico
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	9.9	27.4	36.8	53.1
Mexico | Supply Technologies Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	5.0	13.4	19.5	27.1
Mexico | Assembly Components Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	3.6	10.6	13.8	19.6
Mexico | Engineered Products Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	1.3	3.4	3.5	6.4
Canada
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	10.8	30.4	38.5	58.9
Canada | Supply Technologies Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	1.6	3.3	4.5	6.5
Canada | Assembly Components Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	6.5	20.5	24.9	38.2
Canada | Engineered Products Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	2.7	6.6	9.1	14.2
Other
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	2.1	4.3	6.7	7.4
Other | Supply Technologies Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	0.8	0.5	1.0	0.7
Other | Assembly Components Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	0.1	0.4	0.5	0.8
Other | Engineered Products Segment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	$ 1.2	$ 3.4	$ 5.2	$ 5.9

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Revenue (Narrative) (Details) - Transferred over Time - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract liabilities	$ 35.9	$ 35.7
Contract assets	$ 65.4	$ 61.7

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Segments (Schedule of Segment Information) (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Net sales:
Total revenues		$ 228.3	$ 415.3	$ 594.6	$ 835.4
Segment operating (loss) income:
Total segment operating (loss) income		(20.9)	19.3	(7.9)	41.8
Other components of pension income and other postretirement benefits expense, net		1.8	1.5	3.6	2.8
Interest expense, net		(7.5)	(8.7)	(15.5)	(16.9)
(Loss) income before income taxes		(26.6)	12.1	(19.8)	27.7
Supply Technologies
Net sales:
Total revenues		94.4	161.5	235.2	326.8
Assembly Components
Net sales:
Total revenues		54.9	136.3	183.1	274.6
Engineered Products
Net sales:
Total revenues		79.0	117.5	176.3	234.0
Operating Segments
Segment operating (loss) income:
Total segment operating (loss) income		(15.1)	31.1	4.2	60.6
Operating Segments | Supply Technologies
Segment operating (loss) income:
Total segment operating (loss) income		0.3	11.3	9.5	24.4
Operating Segments | Assembly Components
Segment operating (loss) income:
Total segment operating (loss) income		(14.6)	8.3	(8.3)	16.6
Operating Segments | Engineered Products
Segment operating (loss) income:
Total segment operating (loss) income		(0.8)	11.5	3.0	19.6
Segment Reconciling Items
Segment operating (loss) income:
Corporate costs		(5.8)	(7.5)	(12.1)	(14.5)
One-time net expense related to former President		$ 0.0	$ 4.3	$ 0.0	$ 4.3
President
Segment operating (loss) income:
One-time net expense related to former President	$ (4.3)
Payment	6.0
Reversal related to forfeitures	$ 1.7

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Plant Closure and Consolidation (Details) $ in Millions	6 Months Ended
	Jun. 30, 2020 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 2.3
Expected additional cost in the remainder of current year	1.7
Severance and related employee costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1.2
Asset impairment
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0.5
Other facility costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 0.6

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Acquisition (Narrative) (Details) - Erie Press Systems (EP) - USD ($) $ in Millions		3 Months Ended
	May 31, 2019	Sep. 30, 2019	Jun. 30, 2020
Business Acquisition [Line Items]
Purchase price	$ 8.1
Payments to business acquisition	7.6	$ 0.5
Contingent consideration, maximum value	$ 1.0
Contingent consideration measurement period	2 years
Contingent consideration liability			$ 1.0

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Inventories (Components of Inventory) (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Components of inventory
Raw materials and supplies	$ 93.7	$ 92.6
Work in process	51.6	51.3
Finished goods	168.4	181.3
LIFO reserve	2.0	2.0
Inventories, net	$ 315.7	$ 327.2

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Accrued Warranty Costs (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Changes in product warranty liability [Roll Forward]
Beginning balance	$ 6.8	$ 6.7	$ 6.4	$ 6.2
Claims paid	(0.4)	(0.8)	(0.6)	(1.6)
Warranty expense	0.1	1.2	0.7	2.5
Ending balance	$ 6.5	$ 7.1	$ 6.5	$ 7.1

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income tax expense	$ (9.6)	$ 4.2	$ (4.1)	$ 8.1
Effective tax rate	36.10%	34.30%	20.70%	29.20%
One-time non-deductible payment which impacted effective tax rate				$ 6.0

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Financing Arrangements (Schedule of Long-term Debt) (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Total debt	$ 572.3	$ 568.5
Less current portion of long-term debt and short-term debt	(12.6)	(16.8)
Less unamortized debt issuance costs	(5.9)	(6.5)
Total long-term debt, net	$ 553.8	545.2
Revolving credit facility
Debt Instrument [Line Items]
Stated interest rate	1.37%
Total debt	$ 181.3	173.2
Industrial Equipment Group European Facilities
Debt Instrument [Line Items]
Stated interest rate	3.25%
Total debt	$ 0.0	4.6
Finance Leases
Debt Instrument [Line Items]
Total debt	16.7	17.2
Other
Debt Instrument [Line Items]
Total debt	$ 24.3	23.5
6.625% Senior Notes due 2027 | Senior Notes
Debt Instrument [Line Items]
Stated interest rate	6.625%
Total debt	$ 350.0	$ 350.0

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Financing Arrangements (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2015
Line of Credit Facility [Line Items]
Percentage ownership	100.00%
Finance lease agreement, amount					$ 50,000,000.0
Southwest Steel Processing LLC | Arkansas Development Finance Authority
Line of Credit Facility [Line Items]
Maximum borrowing capacity					$ 11,000,000.0
Borrowings outstanding		$ 7,800,000
Machinery and Equipment
Line of Credit Facility [Line Items]
Finance lease obligations		$ 16,700,000
Senior Notes Due 2027 | Senior Notes | Park-Ohio Industries, Inc.
Line of Credit Facility [Line Items]
Aggregate principal amount	$ 350,000,000.0
Stated interest rate	6.625%
Revolving credit facility
Line of Credit Facility [Line Items]
Stated interest rate		1.37%
Revolving credit facility | Seventh Amendment Credit Agreement | Park-Ohio Industries, Inc.
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 350,000,000.0
Revolving credit facility | Amendment No. 1 to Seventh Amended and Restated Credit Agreement | Park-Ohio Industries, Inc.
Line of Credit Facility [Line Items]
Maximum borrowing capacity				$ 375,000,000.0
Increase in additional borrowing capacity				100,000,000.0
Bank guarantees and letters of credit outstanding		$ 30,600,000	$ 33,800,000
Revolving credit facility | Financing Agreement | Line of Credit | Banco Bolbao Vizcaya Argentaria, S.A.
Line of Credit Facility [Line Items]
Maximum borrowing capacity		11,200,000
Borrowings outstanding		$ 0
Revolving Credit Facility Canadian Sub-Limit | Seventh Amendment Credit Agreement | Park-Ohio Industries, Inc.
Line of Credit Facility [Line Items]
Maximum borrowing capacity	35,000,000.0
Revolving Credit Facility Canadian Sub-Limit | Amendment No. 1 to Seventh Amended and Restated Credit Agreement | Park-Ohio Industries, Inc.
Line of Credit Facility [Line Items]
Maximum borrowing capacity				40,000,000.0
Revolving Credit Facility European Sub-Limit | Seventh Amendment Credit Agreement | Park-Ohio Industries, Inc.
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 25,000,000.0
Revolving Credit Facility European Sub-Limit | Amendment No. 1 to Seventh Amended and Restated Credit Agreement | Park-Ohio Industries, Inc.
Line of Credit Facility [Line Items]
Maximum borrowing capacity				$ 30,000,000.0
Industrial Equipment Group European Facilities
Line of Credit Facility [Line Items]
Stated interest rate		3.25%
Industrial Equipment Group European Facilities | Line of Credit | Banco Bolbao Vizcaya Argentaria, S.A.
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 28,000,000.0

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Financing Arrangements (Fair Value of Debt) (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amount	$ 572.3	$ 568.5
Carrying amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amount	350.0	350.0
Fair value | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value	$ 288.9	$ 358.3

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Stock-Based Compensation (Summary of Restricted Share and Performance Share Activity) (Details)	6 Months Ended
	Jun. 30, 2020 $ / shares shares
Time-Based
Number of Shares
Outstanding - beginning of year (in shares)	471,634
Granted (in shares)	296,093
Vested (in shares)	(131,038)
Forfeited (in shares)	(5,000)
Outstanding - end of period (in shares)	631,689
Weighted Average Grant Date Fair Value
Outstanding - beginning of year (in dollars per share) | $ / shares	$ 32.06
Granted (in dollars per share) | $ / shares	17.73
Vested (in dollars per share) | $ / shares	37.48
Forfeited (in dollars per share) | $ / shares	37.55
Outstanding - end of period (in dollars per share) | $ / shares	$ 24.11
Performance-Based
Number of Shares
Outstanding - beginning of year (in shares)	50,000
Granted (in shares)	0
Vested (in shares)	0
Forfeited (in shares)	0
Outstanding - end of period (in shares)	50,000
Weighted Average Grant Date Fair Value
Outstanding - beginning of year (in dollars per share) | $ / shares	$ 32.55
Granted (in dollars per share) | $ / shares	0
Vested (in dollars per share) | $ / shares	0
Forfeited (in dollars per share) | $ / shares	0
Outstanding - end of period (in dollars per share) | $ / shares	$ 32.55
Restricted share units
Number of Shares
Granted (in shares)	6,100

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Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
Stock-based compensation expense	$ 1.3	$ (0.2)	$ 2.7	$ 1.7
Unrecognized compensation cost related to non-vested stock-based compensation	$ 11.0		$ 11.0
Weighted average period			2 years 4 months 24 days

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Commitments and Contingencies (Details)	6 Months Ended
	Jun. 30, 2020 plaintiff claim
Commitments and Contingencies Disclosure [Abstract]
Number of pending cases | claim	118
Number of plaintiffs | plaintiff	220

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Pension and Postretirement Benefits (Components of net periodic benefit) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Pension Benefits
Components of net periodic benefit cost
Service costs	$ 1.1	$ 0.9	$ 2.2	$ 1.8
Interest costs	0.6	0.6	1.1	1.3
Expected return on plan assets	(2.9)	(2.7)	(5.8)	(5.4)
Recognized net actuarial loss	0.5	0.5	1.0	1.1
Net periodic benefit (income) expense	(0.7)	(0.7)	(1.5)	(1.2)
Postretirement Benefits
Components of net periodic benefit cost
Service costs	0.0	0.0	0.0	0.0
Interest costs	0.1	0.0	0.1	0.1
Expected return on plan assets	0.0	0.0	0.0	0.0
Recognized net actuarial loss	0.0	0.1	0.1	0.1
Net periodic benefit (income) expense	$ 0.1	$ 0.1	$ 0.2	$ 0.2

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Accumulated Other Comprehensive (Loss) Income (Components of accumulated comprehensive loss) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 331.6	$ 329.3	$ 349.6	$ 312.6
Other comprehensive income (loss)	3.3	(2.1)	(12.8)	3.9
Ending balance	316.2	330.2	316.2	330.2
Cumulative Translation Adjustment
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(39.0)	(20.6)	(22.4)	(21.3)
Other comprehensive income (loss)	2.9	(2.5)	(13.7)	(1.8)
Ending balance	(36.1)	(23.1)	(36.1)	(23.1)
Pension and Postretirement Benefits
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(14.1)	(14.3)	(14.6)	(19.6)
Other comprehensive income (loss)	(0.4)	(0.4)	(0.9)	(5.7)
Ending balance	(13.7)	(13.9)	(13.7)	(13.9)
Accumulated Other Comprehensive (Loss) Income
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(53.1)	(34.9)	(37.0)	(40.9)
Ending balance	$ (49.8)	$ (37.0)	$ (49.8)	$ (37.0)

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Weighted-Average Number of Shares Used in Computing Earnings Per Share (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Earnings Per Share [Abstract]
Weighted average basic shares outstanding (in shares)	12.1	12.2	12.2	12.2
Plus: Dilutive impact of employee stock awards (in shares)	0.0	0.2	0.0	0.2
Weighted average diluted shares outstanding (in shares)	12.1	12.4	12.2	12.4
Antidilutive securities excluded from computation of diluted EPS (in shares)	0.3	0.0	0.3	0.0