TimkenSteel revenue, income down slightly in Q3

Canton, Ohio-based TimkenSteel has reported third quarter revenue and net income figures that are down slightly from the prior quarter, as well as a 1 percent decline in shipments.

The company’s third-quarter 2023 net sales of $354.2 million fell by less than 1 percent from the $356.6 million in sales the prior quarter. The firm’s net income of $24.9 million also was down (by 9.8 percent) from the $27.6 million it earned in the second quarter.

TimkenSteel says it shipped 175,800 tons from its scrap-fed electric arc furnace (EAF) steel mill in Canton, representing a 0.9 percent decline from the 177,5000 tons shipped the prior quarter.

The company’s steel shipments were up by 11 percent compared with last year’s third quarter, when TimkenSteel was dealing with the after-effects of a fatal explosion at its mill.

“In the third quarter [of 2023], our unwavering commitment to safety and our focus on strengthening our culture and fostering teamwork across our commercial, supply chain and manufacturing organizations resulted in solid profitability while meeting the needs of our customers,” TimkenSteel President and CEO Mike Williams says.

“The enhanced collaboration we’ve seen, both with United Steelworkers and our teams, is fueling our pursuit of manufacturing excellence and a deep-rooted culture of safety. Despite recent market dynamics such as the automotive work stoppages, we remain confident in our ability to navigate market challenges while delivering sustainable profitability and positive operating cash flow throughout the cycles.”

Some of those challenges may be reflected in TimkenSteel’s fourth quarter balance sheet also, predicts the firm. “Fourth quarter shipments are expected to be sequentially lower as a result of normal seasonality and potential volatility from the automotive work stoppages and restarts,” the company writes in the outlook section of its earnings news release.

“Lead times for bar products currently extend to mid-December 2023 and tube product lead times extend into February 2024.”

TimkenSteel engaged in planned annual shutdown maintenance that was completed at its Canton melt shop in October. “Given the recently completed planned annual shutdown maintenance, the company expects a sequential decrease in the average melt utilization rate in the fourth quarter,” the firm says.