TimkenSteel (TMST) Tops Q4 EPS by 10c
TimkenSteel (NYSE: TMST) reported Q4 EPS of ($0.58), $0.10 better than the analyst estimate of ($0.68). Revenue for the quarter came in at $206.6 million versus the consensus estimate of $211.02 million.
OUTLOOK
First-Quarter 2016 Revenue
- Shipments approximately 5 percent higher than fourth-quarter 2015.
- Automotive demand remains strong with shipments slightly higher sequentially.
- Industrial end markets continue to be weak due to impact from low oil prices and global commodity markets.
- Oil and gas markets sequentially weaker due to low rig activity and decrease in energy exploration and production spend.
- Higher sequential demand in distribution channel due to tapering of inventory destocking in industrial end markets.
First-Quarter 2016 EBITDA
- EBITDA between a loss of $10 million and a loss of $20 million.
- Pricing pressure from imports and weak market dynamics.
- Improved sequential performance in manufacturing due to higher melt utilization of approximately 45 percent and continued benefits from cost reductions.
- Favorable raw material spread compared with fourth-quarter 2015 due to stabilizing scrap markets.
Other Guidance
- 2016 capital spending to be $45 million.
- Will fund 2016 other post-employment benefit (OPEB) expenses primarily from VEBA trust rather than operating cash flow.
For earnings history and earnings-related data on TimkenSteel (TMST) click here.