Global Fastener News

Crawford: Park-Ohio Streamlines for Success

Jason Sandefur

Park-Ohio Holdings Corp. CEO Edward Crawford credits his company’s decade-long integration in Asia with fueling new success, though he still believes in “low-cost, quality manufacturing” in the U.S. Fastener executives are taking note of Park-Ohio”s success. The Cleveland, OH-based fastener and auto component supplier has seen its stock skyrocket over the past three years, soared from $1.93 per share in November 2001 to almost $21 per share this month. Much of that stock value increase has come in the past six months, as quarterly results have improved dramatically.
Park-Ohio share prices jumped more than 17% to $20.91 on a strong third quarter earnings report. The company said Q3 revenue rose 37% to $200.9 million, while net income soared to $4 million, compared with net income of $100,000 during the third quarter of 2003. For the first nine months of 2004, revenue rose 29% to $594.2 million, while net income more than doubled to $16.5 million.
Crawford told FIN that going into the recession of late 2000, the company adopted an aggressive restructuring program to endure what he and other business leaders thought would be an 18-month market decline. “It turned out to be much longer and deeper,” the 65-year-old executive explained.
According to its annual reports, Park-Ohio consolidated 28 supply chain logistics facilities and closed or sold 11 manufacturing plants from 2001 to 2003. Included in its actions was the sale of St. Louis Screw and Green Bearing. The company also trimmed its workforce by about 30% to 2,500 employees.
With those moves, Park-Ohio was situated for success when the market started strengthening. “Quite frankly, we think we”re a better company coming out [of the recession] than going in,” Crawford stated.
Crawford also credits Park-Ohio”s current success to its international business experience, noting the company’s manufacturing facility in China. “We have been deeply integrated in Asia for 10 years,” he pointed out. But Asia is a marketplace for Park-Ohio, not simply a supplier, Crawford noted. And he”is quick to add that business in Asia is only a portion of Park-Ohio”s formula for success.
There is good product being made in the U.S., according to Crawford. “I’m still a firm believer in low-cost, quality manufacturing in America,” he offered. “We’re still committed to America.” Web: pkoh.com �2004 FastenerNews.com