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Dec 31, 2020
Metallus Q4 2020 Earnings Report
Reported a net loss with increased net sales due to rebound in automotive demand and improved manufacturing costs.
Key Takeaways
TimkenSteel reported a net sales increase of 3% compared to the previous quarter, driven by a rebound in automotive demand. The company's manufacturing costs improved due to higher melt utilization and cost reduction actions. Net loss for the quarter was $12.8 million, with an adjusted EBITDA of $20.7 million.
Net sales increased 3% compared with the third quarter of 2020, driven primarily by a continued rebound in automotive demand.
Ship tons increased 6% sequentially as a result of higher automotive and industrial shipments.
Manufacturing costs improved sequentially as a result of higher melt utilization and the timing of the planned annual maintenance shutdown that occurred in the third quarter of 2020.
Total liquidity was $314.1 million as of December 31, 2020, an improvement of $34.1 million from September 30, 2020 and $83.8 million from December 31, 2019.
Revenue by Segment
Forward Guidance
Given the extent and uncertainty of the impact of COVID-19 on the economy and TimkenSteel’s customers, the company is not providing quantitative earnings guidance for the first quarter of 2021. We are, however, encouraged by recent improvements in automotive and industrial end market demand.
Challenges Ahead
- Cash from operating activities to be a use of cash in the first quarter of 2021 given improving demand and the rise in raw material prices.
- Capital expenditures to be approximately $20 million in 2021.
- Required pension contributions to be modest at $1 million to $2 million in 2021.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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