TimkenSteel Announces Third Quarter 2022 Results.

CANTON, Ohio: TimkenSteel (NYSE: TMST), a leader in high-quality specialty steel, manufactured components, and supply chain solutions, today confirmed its previously reported third-quarter 2022 net sales of $316.8 million and reported a net loss of $13.3 million, or a loss of $0.29 per diluted share. On an adjusted basis(1), the third-quarter 2022 net loss was $4.1 million, or a loss of $0.09 per diluted share, and adjusted EBITDA was $10.8 million.

This compares with the company's sequential second-quarter 2022 net sales of $415.7 million and net income of $74.5 million, or $1.42 per diluted share. On an adjusted basis(1), second-quarter 2022 net income was $67.4 million, or $1.29 per diluted share, and adjusted EBITDA was a record $84.2 million.

In the same quarter last year, net sales were $343.7 million with net income of $50.1 million, or $0.94 per diluted share. On an adjusted basis(1), third-quarter 2021 net income was $55.2 million, or $1.04 per diluted share, and adjusted EBITDA was $72.0 million.

"As we guided in our mid-October announcement, our third-quarter financial performance was significantly impacted by the July incident at our melt shop. While we anticipate that fourth-quarter profitability will remain challenged as we continue to ramp up melt production, I am encouraged that demand remains solid across our end markets, we see a positive trend in base sales pricing and our balance sheet is strong. These factors give me confidence that we will enter 2023 with positive momentum and are well positioned for long-term success," said Mike Williams, president and chief executive officer. "We remain focused on enhancing our safety culture with important initiatives and advanced training that will continue into 2023. Lastly, I thank our customers for their continued trust in TimkenSteel."

THIRD-QUARTER 2022 FINANCIAL SUMMARY

Net sales of $316.8 million decreased 24 percent compared with $415.7 million in the second quarter 2022. The decrease in net sales was primarily driven by lower shipments and a market-driven 13 percent reduction in surcharge revenue per ton, partially offset by 9 percent higher base sales(1) prices. Compared with the prior-year third quarter, net sales decreased 8 percent primarily driven by lower shipments, partially offset by 30 percent higher base sales(1) prices.

Ship tons of 158,500 decreased 50,400 tons sequentially, or 24 percent, driven by lower shipments across all end markets. Compared with the...

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