TimkenSteel today reported first-quarter net sales of $217.9 million and a net loss of $13.6 million or minus 31 cents per share. This compares with net income of $6.9 million or 15 cents per share in the same quarter last year.
EBITDA for the quarter was a loss of $1.6 million, a sequential improvement of $16 million and better than original first-quarter expectations.
"Our employees helped us achieve better-than-expected results in the quarter. They continue to reduce costs and capture new sales," said Tim Timken, chairman, CEO and president. "Our performance also benefited from conditions in several of our markets, with industrial showing positive movement and automotive demand remaining strong. We continue to face a challenging year, though, with energy markets still weak and imports pressuring price in spot markets. Everyone at TimkenSteel remains focused on the priorities that enable us to compete in this environment and emerge a stronger company."
"Our employees helped us achieve better-than-expected results in the quarter. They continue to reduce costs and capture new sales," said Tim Timken, chairman, CEO and president. "Our performance also benefited from conditions in several of our markets, with industrial showing positive movement and automotive demand remaining strong. We continue to face a challenging year, though, with energy markets still weak and imports pressuring price in spot markets. Everyone at TimkenSteel remains focused on the priorities that enable us to compete in this environment and emerge a stronger company."
First-quarter net sales decreased $170.8 million or 43.9 percent year over year and increased $11.3 million or 5.5 percent sequentially. Ship tons were approximately 186,000, a decrease of 31.3 percent over the first quarter of 2015, but an increase of 6.2 percent sequentially.
Sequentially, EBIT was favorable due to increased melt utilization, the positive impact of cost reduction actions and the timing of raw material spread from stabilizing scrap prices. Melt utilization was 47 percent for the quarter, compared with 66 percent in first-quarter 2015, and 41 percent in fourth-quarter 2015.
Shipments in Q2 are expected to be similar to first-quarter 2016 with an improved mix. Automotive demand should remain strong, continued pressure on oil and gas shipments is expected due to low levels of energy exploration and production spend, and demand in industrial supply chains should be higher due to tapering of inventory destocking.