TimkenSteel (TMST) Tops Q1 EPS by 5c, Revenues Beat

TimkenSteel (NYSE: TMST) reported Q1 EPS of $0.09, $0.05 better than the analyst estimate of $0.04. Revenue for the quarter came in at $371 million versus the consensus estimate of $369.2 million.

"As anticipated, our performance strengthened in the first quarter, with continued expansion in gross margin and increased net income compared with the same quarter last year. We achieved these results by executing a strategy to sell a richer mix of products, improve price and deliver on time," said Tim Timken, chairman, CEO and president. "This commercial strategy combined with operational excellence in safety, quality and customer service remains our priority and will drive shareholder value."

SECOND-QUARTER 2019 OUTLOOK

• Shipments are expected to be similar to first-quarter 2019 on 12 percent lower production.
• Lower second-quarter demand and production provides the opportunity to accelerate certain scheduled maintenance into the second quarter from third-quarter 2019. As a result of this timing change, second-quarter fixed-cost leverage will be lower by approximately $10 million and second-quarter maintenance will increase by approximately $7 million, with an offsetting benefit in third-quarter 2019.
• Raw material spread is expected to be a headwind as the No.1 busheling scrap index trends downward compared with first-quarter 2019.
• Adjusted EBITDA(1) is projected to be between $0 and $10 million. At this time the company is unable to reconcile its second-quarter outlook for adjusted EBITDA(1) to a comparable GAAP range due to an expected re-measurement of one of its postretirement plans during the second-quarter 2019. The gain or loss from the re-measurement cannot currently be estimated.

For earnings history and earnings-related data on TimkenSteel (TMST) click here.

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