TimkenSteel (TMST) Tops Q3 EPS by 35c, Revenues Miss

TimkenSteel (NYSE: TMST) reported Q3 EPS of ($0.10), $0.35 better than the analyst estimate of ($0.45). Revenue for the quarter came in at $274.2 billion versus the consensus estimate of $292 million.

"As expected, we continue to be challenged by our end markets. We are laser-focused on improving customer engagement and outcomes while driving financial and structural improvements through what we can control, including cost reduction, cash generation and enhanced liquidity," said Terry L. Dunlap, interim chief executive officer and president. "We are acting with urgency and pace to improve profitability, cash flow and shareholder value."

FOURTH QUARTER OF 2019 OUTLOOK

The company expects fourth-quarter shipments to be down from the third-quarter 2019 by approximately 15 percent. Adjusted EBITDA(1) is projected to be between break-even to negative $10 million. Due to the expected full remeasurement of the company\'s pension and post-retirement plan assets and obligations at Dec. 31, 2019, the company is unable to reconcile its fourth-quarter outlook for adjusted EBITDA(1) to a comparable GAAP range. The gain or loss from re-measurement cannot be estimated at this time.

Production levels are expected to be below third-quarter 2019 as a result of continued balancing of production with demand. Surcharge revenue is expected to be lower due to a declining No. 1 busheling scrap index. LIFO is projected to continue to be a benefit, but at a level below third quarter of 2019. Capital spending is projected to be approximately $15 million to $20 million in the fourth quarter.

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

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