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Mar 31, 2020
Metallus Q1 2020 Earnings Report
Reported a net loss amidst COVID-19 challenges, but achieved record-high operating cash flow and earnings guidance.
Key Takeaways
TimkenSteel reported first-quarter 2020 net sales of $259.7 million and a net loss of $19.9 million. The company generated strong operating cash flow of $63.8 million and achieved its first-quarter 2020 shipment, net income (loss) and EBITDA guidance.
Net sales decreased by approximately 30 percent compared to the prior-year first quarter.
Ship tons declined 18 percent from the prior-year first quarter.
Surcharge revenue decreased 49 percent from the prior-year period.
Operating cash flow was $63.8 million for the first quarter of 2020.
Revenue by Segment
Forward Guidance
Given the evolving impact of COVID-19 on the overall economy, the company will not provide quarterly guidance at this time. The company remains committed to delivering approximately $70 million of run rate savings from its previous cost reduction actions.
Positive Outlook
- Focus on employee safety
- Serving customers
- Conserving cash
- Aligning costs and production with sharply lower COVID-19-driven demand.
- Committed to delivering approximately $70 million of run rate savings from its previous cost reduction actions.
Challenges Ahead
- Extent and duration of the COVID-19 pandemic and resulting effect on the company’s operations and financial results remain uncertain.
- Sharply lower COVID-19-driven demand
- Reduced interim CEO and senior executives’ base salaries by 20 percent and other executives’ base salaries by 10 percent, effective May 1
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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