TimkenSteel (TMST) Tops Q1 EPS by 7c, Revenues Beat

TimkenSteel (NYSE: TMST) reported Q1 EPS of $0.43, $0.07 better than the analyst estimate of $0.36. Revenue for the quarter came in at $273.6 million versus the consensus estimate of $244.9 million.

"I am pleased with the strong start to the year at TimkenSteel. In March, we completed the transition of our melt and casting activities to a single location at our Faircrest facility. This well-coordinated effort, supported by our employees, customers and suppliers, is a significant step toward improving our manufacturing efficiency and utilization," said Mike Williams, president and chief executive officer. "With a recovery in automotive and industrial demand combined with an improving cost structure, adjusted EBITDA nearly doubled sequentially and we generated positive operating cash flow."

OUTLOOK

Given steady improvement in the automotive and industrial end markets, the company expects second quarter ship tons to increase sequentially by high-single digits on a percentage basis. Additionally, the company expects adjusted EBITDA growth from the first quarter of 2021 with melt utilization of 80 percent or higher.

Capital expenditures are expected to be approximately $20 million in 2021, consistent with previous guidance. Regarding the convertible debt due June 1, 2021, at maturity the company intends to repay the remaining outstanding principal balance plus accrued interest with available cash. As of March 31, 2021, the outstanding principal balance of the convertible debt due June 1, 2021 was $40.2 million.

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

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