US-based steelmaker Metallus has shared its financial results for the second quarter of 2024.
The company reported second quarter net sales of $294.7 million and net income of $4.6 million, or $0.10 per diluted share. In the same quarter in 2023, net sales were $356.6 million and net income was $28.9 million, or $0.62 per diluted share.
The company’s shipments totaled 150,100 mt, decreasing by 5,100 mt sequentially, or 3 percent month on month, driven by lower shipments in the industrial and energy end markets, partially offset by higher automotive shipments. Compared to the second quarter of 2023, Metallus’ shipments decreased by 15 percent as a result of lower industrial, automotive, and energy shipments, partially offset by higher aerospace & defense shipments.
Mike Williams, president and CEO of Metallus, stated, “During the quarter, automotive shipments were steady, and the aerospace & defense end market remained strong. However, we continue to face softness in the industrial and energy end markets given global economic conditions and elevated imports, customer and supply chain inventory positions, and scrap price uncertainty. Nonetheless, we remain focused on what we can control by balancing production with demand, prudently managing our working capital and costs, and investing in our assets and employees for the future. When market dynamics shift, we are well-positioned to capitalize on the demand recovery and anticipate improved profitability.”
Looking forward, Metallus expects its shipments in the third quarter to be lower than the second quarter. The company’s third-quarter product mix is expected to be less favorable compared with the second quarter while base price per ton is anticipated to remain relatively steady. Lead times are to remain short with bar product lead times in early September and tube product lead times in early October. And operationally, the company plans an annual shutdown maintenance for the second half of 2024 at a cost of approximately $13 million, split relatively evenly between the third and fourth quarters.