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Mar 31, 2022
Metallus Q1 2022 Earnings Report
Reported net sales and net income for the first quarter of 2022, driven by strong customer demand and higher base prices.
Key Takeaways
TimkenSteel reported first-quarter 2022 net sales of $352.0 million and net income of $37.1 million, or $0.70 per diluted share. On an adjusted basis, first-quarter 2022 net income was $48.6 million, or $0.92 per diluted share, and adjusted EBITDA was $65.3 million.
Net sales of $352.0 million in the first quarter reflect strength in customer demand and higher base prices.
Net income of $37.1 million with adjusted EBITDA of $65.3 million.
Operating cash flow of $13.3 million.
The company expects to report a sequential increase in adjusted EBITDA and positive operating cash flow in the second quarter of 2022.
Revenue by Segment
Forward Guidance
The company expects to report a sequential increase in adjusted EBITDA and positive operating cash flow in the second quarter of 2022.
Positive Outlook
- Customer demand remains solid across all end markets, as evidenced by a full order book through the end of the third quarter of 2022.
- Expect a sequential increase in second-quarter shipments.
- Expect second-quarter base price per ton to be similar to slightly higher, compared with the first quarter of 2022.
- Expect a second-quarter sequential increase in surcharge revenue per ton as a result of higher scrap and alloy prices.
- Melt utilization is expected to be above 85 percent during the second quarter.
Challenges Ahead
- Periodic customer manufacturing disruptions may continue to negatively impact shipments.
- Inflationary pressure is anticipated to continue on commodities, consumables and other manufacturing costs.
- Operating cash flow is expected to be positive in the second quarter primarily driven by profitability and continued disciplined working capital management.
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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