TimkenSteel reported third-quarter 2018 net sales of $409.9 million and net income of $1.4 million. In the same quarter last year, net sales were $339.1 million with a net loss of $5.9 million.
Ship tons were approximately 295,500 in Q3, an increase of 2 percent over the third quarter of 2017, attributed by the company to continued end-market strength.
The company said in a press release that net sales benefited from improved product mix, higher prices and surcharges, as well as increased volume. Improved profitability was primarily due to more favorable product mix resulting from more energy and industrial volume and reduced billet sales, as well as higher prices and increased volume. TimkenSteel said manufacturing costs were higher year-over-year due to the timing of scheduled maintenance, with prior-year scheduled maintenance occurring in the fourth quarter.
Melt utilization was 62 percent for the third quarter of 2018, compared with 74 percent in third-quarter 2017. The decrease in third-quarter melt utilization was driven primarily by the scheduled maintenance shutdown.
As for a Q4 outlook, the company said normal seasonality will impact fourth-quarter outlook as customers balance inventories. Shipments are expected to be similar to fourth-quarter 2017 with continued improvement in mix, raw material spread is expected to be similar to third-quarter 2018, and higher manufacturing costs and consumables inflation will be a headwind.