TimkenSteel reported first quarter net sales of $309.4 million and a net loss of $5.3 million. This compares with net sales of $217.9 million and a net loss of $9.7 million in the same quarter last year, and net sales of $214.7 million and a net loss of $67.0 million in the fourth quarter of 2016.
In a statement, the company said the improvement was driven primarily by the favorable timing impact from raw material spread, focused execution of cost reduction tactics and additional volume.
Tons shipped during Q1 reached approximately 280,000, an increase of 50.4 percent over the first quarter of 2016 and 45.0 percent sequentially. Gains were related primarily to increased market penetration and sales initiatives, including new business supplying billets to tube makers.
Melt utilization was 71 percent for the quarter, compared with 47 percent in first-quarter 2016 and 50 percent in fourth-quarter 2016. Higher volumes, primarily from new business, improved both melt utilization and operating cost leverage.
As for a Q2 outlook, shipments are expected to be approximately 10,000 to 20,000 tons (or about 5 percent) higher than first-quarter 2017 based on positive sentiment across all markets. Shipments of billets to tube makers projected to be about 60,000 tons; 10,000 tons higher than first-quarter. Net income/loss is projected to be between a loss of $8 million and income of $2 million.