Metallus Inc. (MTUS) Misses Q2 EPS by 22c; offers outlook

Metallus Inc. (NYSE: MTUS) reported Q2 EPS of $0.15, $0.22 worse than the analyst estimate of $0.37. Revenue for the quarter came in at $294.7 million versus the consensus estimate of $320.37 million.

OUTLOOK

2024 OUTLOOK

Given the elements outlined in the outlook below, the company expects adjusted EBITDA to decline sequentially in the third quarter of 2024 on weaker market demand.

Commercial:

Third-quarter shipments are expected to be lower than the second quarter.
Lead times remain short with bar product lead times in early September and tube product lead times in early October.
Third-quarter product mix is expected to be less favorable compared with the second quarter while base price per ton is anticipated to remain relatively steady.

Operations:

The company expects the third-quarter average melt utilization rate to sequentially increase while the company continues to balance production with demand.
Annual shutdown maintenance is planned for the second half of 2024 at a cost of approximately $13 million, split relatively evenly between the third and fourth quarters.

Other matters:

Planned capital expenditures are approximately $55 million in 2024, a $5 million reduction from previous guidance. The capital expenditure guidance excludes government-funded investments to support munitions capacity expansion.
Required pension contributions are approximately $3 million in the third quarter with an estimated additional $5 million of required pension contributions in the fourth quarter of 2024.
An effective income tax rate of approximately 25 percent is expected for the full-year 2024.

For earnings history and earnings-related data on Metallus Inc. (MTUS) click here.

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