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Sep 30, 2021
Metallus Q3 2021 Earnings Report
TimkenSteel reported third-quarter results with increased net sales and net income compared to the previous year.
Key Takeaways
TimkenSteel reported a strong third quarter with net sales of $343.7 million and net income of $50.1 million. The company achieved record adjusted EBITDA of $72.0 million and strong operating cash flow of $53.8 million. Demand environment remains robust, and the first half of 2022 order book is filling up in a strong pricing environment.
Net sales increased 5 percent sequentially to $343.7 million.
Net income reached $50.1 million with adjusted EBITDA of $72.0 million.
Operating cash flow was strong at $53.8 million, a 37 percent sequential improvement.
Total liquidity reached a record $444.4 million.
Revenue by Segment
Forward Guidance
The company expects fourth quarter ship tons to be lower than third-quarter levels due to lower melt utilization from the Faircrest melt shop maintenance shutdown and potential automotive customer manufacturing outages.
Positive Outlook
- Melt utilization is expected to be at or above 75 percent during the fourth quarter.
Challenges Ahead
- Fourth quarter shipments will be negatively impacted by lower melt utilization as a result of the recently completed annual Faircrest melt shop maintenance shutdown.
- Periodic automotive customer manufacturing outages due to the semiconductor chip shortage may negatively impact fourth quarter mobile shipments.
- Annual Faircrest shutdown maintenance was completed in the fourth quarter at a cost of approximately $5 million.
- A labor agreement ratification bonus will be paid to employees during the fourth quarter at a cost of approximately $2 million.
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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