TimkenSteel Announces Second-Quarter 2023 Results

• Net sales of $356.6 million increased 10 percent compared with $323.5 million in the first quarter 2023. The increase in net sales was primarily driven by higher shipments and base sales⁽¹⁾prices, as well as an increase in average raw material surcharge revenue per ton as a result of higher scrap and alloy prices. Compared with the prior-year second quarter, the decrease in net sales was driven primarily by lower shipments and a reduction in surcharge revenue per ton as a result of lower scrap prices, partially offset by higher base sales⁽¹⁾ prices.
• Ship tons of 177,500 increased 4,600 tons sequentially, or 3 percent, driven by higher industrial shipments. Customer demand was supported by improved operating performance and a higher level of inventory available for shipment. Compared with the prior-year second quarter, ship tons decreased 15 percent as a result of lower shipments across all end markets.
• Manufacturing costs increased by $6.8 million on a sequential basis, primarily driven by higher first quarter plant costs being recognized in the second quarter as inventory was sold. As anticipated, melt utilization improved to 75 percent from 73 percent in the first quarter. Compared with the prior-year second quarter, manufacturing costs increased $15.3 million, primarily driven by lower cost absorption given the 75 percent melt utilization rate compared with 84 percent in the same quarter last year. Manufacturing costs were also higher compared with the prior-year second quarter due to the inflationary cost environment and increased maintenance costs.
• Other income included an insurance recovery of $1.5 million in the second quarter of 2023, compared with a recovery of $9.8 million recognized in the first quarter of 2023, both related to the recovery of certain costs associated with unplanned downtime in the second half of 2022. Given that the second quarter of 2023 insurance recovery related to last year, the $1.5 million insurance recovery has been excluded from adjusted EBITDA.

CASH, LIQUIDITY AND REPURCHASE ACTIVITY

As of June 30, 2023, the company's cash and cash equivalents balance was $221.9 million. In the second quarter, operating cash flow was $13.3 million, primarily driven by profitability and insurance recoveries partially offset by higher working capital. Total liquidity⁽²⁾ was $529.9 million as of June 30, 2023.

In the second quarter, the company repurchased approximately 650,300 common shares in the open market at an aggregate cost of $11.4 million. As of June 30, 2023, the company had $52.2 million remaining on its existing share repurchase program.

2023 OUTLOOK

Given the elements outlined in the outlook below, the company expects adjusted EBITDA to remain strong in the third quarter of 2023.

Commercial:

• Ship tons are expected to modestly increase in the third quarter with steady customer demand and orders booking into the fourth quarter.
• Base price per ton is anticipated to remain strong for the remainder of 2023.

Operations:

• The company expects a sequential increase in the average melt utilization rate in the third quarter.
• Inflationary pressure is anticipated to be stable on commodities, consumables and other manufacturing costs in the second half of 2023.
• Annual shutdown maintenance is planned for the second half of 2023 at a cost of approximately $12 million.

Cash and other matters:

• Operating cash flow is expected to be positive in the third quarter, primarily driven by anticipated profitability.
• Planned capital expenditures are expected to be approximately $50 million in 2023, an increase from the previous $45 million guidance.

TIMKENSTEEL EARNINGS WEBCAST INFORMATION
TimkenSteel will provide live Internet listening access to its conference call with the financial community scheduled for Friday, August 4, 2023 at 9:00 a.m. ET. The live conference call will be broadcast at investors.timkensteel.com. A replay of the conference call will also be available at investors.timkensteel.com.

ABOUT TIMKENSTEEL CORPORATION
TimkenSteel (NYSE: TMST) manufactures high-performance carbon and alloy steel products from recycled scrap metal in Canton, OH, serving demanding applications in mobile, energy and a variety of industrial end markets. The company is a premier U.S. producer of alloy steel bars (up to 16 inches in diameter), seamless mechanical tubing and manufactured components. In the business of making high-quality steel for more than 100 years, TimkenSteel's proven expertise contributes to the performance of our customers' products. The company employs approximately 1,750 people and had sales of $1.3 billion in 2022. For more information, please visit us at www.timkensteel.com.

NON-GAAP FINANCIAL MEASURES
TimkenSteel reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP") and corresponding metrics as non-GAAP financial measures. This earnings release includes references to the following non-GAAP financial measures: adjusted earnings (loss) per share, adjusted net income (loss), EBIT, adjusted EBIT, EBITDA, adjusted EBITDA, free cash flow, base sales, and other adjusted items. These are important financial measures used in the management of the business, including decisions concerning the allocation of resources and assessment of performance. Management believes that reporting these non-GAAP financial measures is useful to investors as these measures are representative of the company's performance and provide improved comparability of results. See the attached schedules for definitions of the non-GAAP financial measures referred to above and corresponding reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measures. Non-GAAP financial measures should be viewed as additions to, and not as alternatives for, TimkenSteel's results prepared in accordance with GAAP. In addition, the non-GAAP measures TimkenSteel uses may differ from non-GAAP measures used by other companies, and other companies may not define the non-GAAP measures TimkenSteel uses in the same way.

FORWARD-LOOKING STATEMENTS
This news release includes "forward-looking" statements within the meaning of the federal securities laws. You can generally identify the company's forward-looking statements by words such as "will," "anticipate," "aspire," "believe," "could," "estimate," "expect," "forecast," "outlook," "intend," "may," "plan," "possible," "potential," "predict," "project," "seek," "target," "should," "would," "strategy," or "strategic direction" or other similar words, phrases or expressions that convey the uncertainty of future events or outcomes. The company cautions readers that actual results may differ materially from those expressed or implied in forward-looking statements made by or on behalf of the company due to a variety of factors, such as: the potential impact of the COVID-19 pandemic on the company's operations and financial results, including cash flows and liquidity; whether the company is able to successfully implement actions designed to improve profitability on anticipated terms and timetables and whether the company is able to fully realize the expected benefits of such actions; deterioration in world economic conditions, or in economic conditions in any of the geographic regions in which the company conducts business, including additional adverse effects from global economic slowdown, terrorism or hostilities, including political risks associated with the potential instability of governments and legal systems in countries in which the company or its customers conduct business, and changes in currency valuations; the impact of the Russia-Ukraine conflict on the global economy, sourcing of raw materials, and commodity prices; climate-related risks, including environmental and severe weather caused by climate changes, and legislative and regulatory initiatives addressing global climate change or other environmental concerns; the effects of fluctuations in customer demand on sales, product mix and prices in the industries in which the company operates, including the ability of the company to respond to rapid changes in customer demand including but not limited to changes in customer operating schedules due to supply chain constraints, the effects of customer bankruptcies or liquidations, the impact of changes in industrial business cycles, and whether conditions of fair trade exist in U.S. markets; competitive factors, including changes in market penetration, increasing price competition by existing or new foreign and domestic competitors, the introduction of new products by existing and new competitors, and new technology that may impact the way the company's products are sold or distributed; changes in operating costs, including the effect of changes in the company's manufacturing processes, changes in costs associated with varying levels of operations and manufacturing capacity, availability of raw materials and energy, the company's ability to mitigate the impact of fluctuations in raw materials and energy costs and the effectiveness of its surcharge mechanism, changes in the expected costs associated with product warranty claims, changes resulting from inventory management, cost reduction initiatives and different levels of customer demands, the effects of unplanned work stoppages, and changes in the cost of labor and benefits; the success of the company's operating plans, announced programs, initiatives and capital investments, and the company's ability to maintain appropriate relations with the union that represents its associates in certain locations in order to avoid disruptions of business; unanticipated litigation, claims or assessments, including claims or problems related to intellectual property, product liability or warranty, employment matters, and environmental issues and taxes, among other matters; cyber-related risks, including information technology system failures, interruptions and security breaches; with respect to the company's ability to achieve its sustainability goals, including its 2030 environmental goals, the ability to meet such goals within the expected timeframe, changes in laws, regulations, prevailing standards or public policy, the alignment of the scientific community on measurement and reporting approaches, the complexity of commodity supply chains and the evolution of and adoption of new technology, including traceability practices, tools and processes; the availability of financing and interest rates, which affect the company's cost of funds and/or ability to raise capital, including the ability of the company to refinance or repay at maturity the convertible notes due December 1, 2025; the company's pension obligations and investment performance, and/or customer demand and the ability of customers to obtain financing to purchase the company's products or equipment that contain its products; the overall impact of pension and other postretirement benefit mark-to-market accounting; the effects of the conditional conversion feature of the convertible notes due December 1, 2025, which, if triggered, entitles holders to convert the notes at any time during specified periods at their option and therefore could result in potential dilution if the holder elects to convert and the company elects to satisfy a portion or all of the conversion obligation by delivering common shares instead of cash; the consistency of melt production to meet forecasted demand levels following unplanned downtime in the second half of 2022; additional amounts, if any, that the company is able to obtain from its business interruption insurance in connection with the unplanned downtime; availability of property insurance coverage at commercially reasonable rates or insufficient insurance coverage to cover claims or damages; and the impacts from any repurchases of our common shares, including the timing and amount of any repurchases. Further, this news release represents our current policy and intent and is not intended to create legal rights or obligations. Certain standards of measurement and performance contained in this news release are developing and based on assumptions, and no assurance can be given that any plan, objective, initiative, projection, goal, mission, commitment, expectation or prospect set forth in this news release can or will be achieved. Inclusion of information in this news release is not an indication that the subject or information is material to our business or operating results.

Additional risks relating to the company's business, the industries in which the company operates, or the company's common shares may be described from time to time in the company's filings with the SEC. All of these risk factors are difficult to predict, are subject to material uncertainties that may affect actual results and may be beyond the company's control. Readers are cautioned that it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results and that the above list should not be considered to be a complete list. Except as required by the federal securities laws, the company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

CONSOLIDATED STATEMENTS OF OPERATIONS
		Three Months Ended June 30,								Six Months Ended June 30,
(in millions, except per share data) (Unaudited)		2023				2022				2023				2022
Net sales		$	356.6			$	415.7			$	680.1			$	767.7
Cost of products sold			302.9				334.3				586.0				626.3
Gross Profit			53.7				81.4				94.1				141.4
Selling, general & administrative expenses (SG&A)			20.4				21.7				41.4				40.2
Restructuring charges			—				0.4				—				0.8
Loss (gain) on sale or disposal of assets, net			(2.6)				0.5				(2.5)				0.6
Loss on extinguishment of debt			—				26.0				11.4				43.0
Other (income) expense, net			(2.3)				(43.8)				(11.1)				(59.0)
Earnings (Loss) Before Interest and Taxes (EBIT)(1)			38.2				76.6				54.9				115.8
Interest (income) expense, net			(1.7)				0.6				(3.2)				1.8
Income (Loss) Before Income Taxes			39.9				76.0				58.1				114.0
Provision (benefit) for income taxes			11.0				1.5				14.8				2.4 Werbung Mehr Nachrichten zur Metallus Inc Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 10:21 - PR Newswire Global Alpha Capital Management Ltd - Form 8.3 - Keywords Studios Plc 10:20 - PR Newswire Pentwater Capital Management LP - Form 8.3 - DS Smith Plc 04:32 - PR Newswire Ashoka WhiteOak Emerging Markets Trust Plc - Response to Strategic Review announcement by Asia Dragon Trust plc Die Wachstumsgeschichte    Analysten sehen kurzfristige +37 %-Chance bei diesem europäischen Marktführer weiterlesen» Anzeige wo-site-teaser-box-17020_site-teaser-box_2024-05-21_07%253A00%253A00_2024-05-22_09%253A00%253A59