TimkenSteel reported fourth-quarter net sales of $206.6 million and a net loss of $25.5 million or minus 58 cents per share. This compares with net income of $16.4 million or 36 cents per share in the same quarter of the prior year.
For the full year, net sales declined by 34.0 percent compared with 2014. EBIT for the full year was a loss of $113.6 million, compared with adjusted EBIT of $147.7 million in the previous year. The decline was driven by lower volume from energy and industrial end market weakness, higher per-ton manufacturing costs from 49.0 percent melt utilization, and unfavorable timing impacts from raw material spread, slightly offset by LIFO income.
"While we continue to feel the impact from weak global commodity markets and high customer inventory levels, our cost reduction efforts and pace of new business from innovation reduced the losses we anticipated in the quarter," said Tim Timken, chairman, CEO and president. "We expect 2016 to be another challenging year, so our focus will continue to be on cash generation while maintaining industry leading customer service. We will continue to manage through this cycle in a way that will generate value for shareholders and make us stronger as markets recover."
Fourth-quarter net sales decreased $201.7 million or 49.4 percent year over year and 11.2 percent sequentially. Ship tons were approximately 175,000, a decrease of 35.1 percent over the fourth quarter of 2014 and 1.9 percent sequentially.