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Mar 31, 2023
Metallus Q1 2023 Earnings Report
Reported an increase in net sales driven by higher shipments and base sales prices, resulting in positive net income and adjusted EBITDA.
Key Takeaways
TimkenSteel reported a net sales of $323.5 million and a net income of $14.4 million, or $0.30 per diluted share for Q1 2023. On an adjusted basis, net income was $20.8 million, or $0.44 per diluted share, and adjusted EBITDA was $36.0 million. The company's performance was driven by a 35% increase in shipments and strong base pricing.
Net sales increased by 32% compared to the fourth quarter of 2022, reaching $323.5 million.
Net income was $14.4 million, with an adjusted EBITDA of $36.0 million.
Operating cash flow was $9.8 million, with cash and cash equivalents ending at $227.4 million.
The company deployed $28.1 million in cash to repurchase common shares and convertible notes.
Revenue by Segment
Forward Guidance
TimkenSteel expects to report a sequential increase in adjusted EBITDA in the second quarter of 2023.
Positive Outlook
- Ship tons are expected to sequentially increase in the second quarter with customer orders booking into the third quarter.
- Base price per ton is anticipated to remain strong for the remainder of 2023.
- The company expects an average melt utilization rate of approximately 75 percent for the second quarter.
- Inflationary pressure is anticipated to be stable on commodities, consumables and other manufacturing costs.
- Operating cash flow is expected to be positive in the second quarter, primarily driven by anticipated profitability.
Challenges Ahead
- Annual shutdown maintenance is planned for the second half of 2023 at a cost of approximately $14 million.
- The company continues to seek additional insurance recoveries related to unplanned downtime in the second half of 2022, although the timing and amount of potential additional recoveries are uncertain at this time.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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