TimkenSteel reported second-quarter net sales of $223.1 million and a net loss of $10.5 million. This compares with a net loss of $24.3 million in the same quarter last year. Net sales increased 2.4 percent sequentially but decreased 19.8 percent year-on-year.
Tons shipped in Q2 totaled 190,000, a decrease of 10.5 percent over the second quarter of 2015, but an increase of 1.9 percent sequentially.
Melt utilization was 45 percent for the quarter, compared with 47 percent in second-quarter 2015, and 47 percent in first-quarter 2016.
Commented on the quarterly results, Tim Timken, chairman, CEO and president said: "We saw signs of stabilizing scrap and commodity markets in the second quarter. Our shipments increased and we realized the benefit of raw material spread.”
Shipments are expected to be approximately 5 percent lower in Q3 compared to Q2 than second-quarter 2016, as automotive demand is expected to decrease due to seasonal impacts while still remaining relatively strong. However, continued pressure on oil and gas shipments is expected due to low levels of energy exploration and production spend. Also, industrial demand is expected to remain low but stable, similar to second quarter, while imports and weak market dynamics are expected to continue to pressure pricing.
A third-quarter net loss is projected to be between $20 million and $13 million, while melt utilization is expected to be similar to second quarter and the raw material spread is expected to be flat versus second quarter.