TimkenSteel Reports Fourth-Quarter Loss
By Metal Center News Staff
on Feb 3, 2016
Feb. 3, 2016 TimkenSteel Reports Fourth-Quarter Loss TimkenSteel, Canton, Ohio, reported a net loss of $113.6 million in 2015, consistent with the performance of other domestic steelmakers. The company had reported net income of $147.7 million in 2014. For the fourth quarter, the company reported a net loss of $25.5 million, down from net income of $16.4 million in the prior-year quarter. The fourth-quarter loss was a slight improvement on the $30.8 million loss in the third quarter. The declines were driven by lower volume from energy and industrial end markets, higher-per ton manufacturing costs due to just 49.0 percent melt utilization and unfavorable timing from raw material spreads, company executives claimed. Fourth-quarter net sales of $206.6 million were down 49.4 percent from the same quarter in 2014 and 11.2 percent from the previous quarter. For the full year, net sales of $1.11 billion were off 33.9 percent from 2014. Fourth-quarter shipments of 175,000 tons decreased 35.1 percent from 2014 and 1.9 percent from the prior quarter. "While we continue to feel the impact from weak global commodity markets and high customer inventory levels, our cost reduction efforts and pace of new business from innovation reduced the losses we anticipated in the quarter," said Tim Timken, chairman, CEO and president during the company’s quarterly conference call with analysts and investors. "We expect 2016 to be another challenging year. We will continue to manage through this cycle in a way that will generate value for shareholders and make us stronger as markets recover." During the quarter, the company completed previously announced actions to reduce costs, which will generate about $50 million in savings in 2016.