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TimkenSteel (NYSE:TMST) -6% post-market Wednesday after guiding for Q3 adjusted EBITDA of $9M-$12M, saying the late July incident at its melt shop, which resulted in about a month of melt shop downtime and a slower than expected ramp up, “significantly” affected Q3 profitability.
As a result of the melt shop incident, TimkenSteel (TMST) said Q3 melt utilization was 40% compared with 84% in Q2.
Q3 commercial net sales fell 24% Q/Q to $316.8M, driven by a 24% decline in shipments to 158.5K tons due to availability of inventory for shipment as a result of the melt shop incident.
The company said demand remains strong across its end markets with a customer order backlog of more than 300K ship tons, the majority of production capacity allocated to customers in 2023, and positive momentum in base pricing.
TimkenSteel (TMST) is “financially sound” and should be able to create shareholder value, Hong Chew Eu writes in an analysis published on Seeking Alpha.
Image and article originally from seekingalpha.com. Read the original article here.