NYSE$MTUS

Metallus Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Net sales decreased due to lower shipments, resulting in a net loss.

TimkenSteel reported a net sales of $316.8 million and a net loss of $13.3 million for Q3 2022. The company's performance was significantly impacted by the July incident at its melt shop, but demand remains solid across end markets and the balance sheet is strong.

  • Net sales of $316.8 million.
  • Net loss of $13.3 million.
  • Operating cash flow of $46.8 million.
  • Cash and cash equivalents of $262.5 million.

Headline financials

Total Revenue

$317M

Previous: $344M-7.8%
EPS (adj)

-$0.09

Previous: $1.04-108.7%
Ship Tons

158.5K

Previous: 212.7K-25.5%
Melt Utilization

40.0%

No prior period
Capital Expenditures

-$15.7M

Previous: -$7.3M-115.1%
Free Cash Flow

-$29M

Previous: $42.8M-167.8%
Net Income

-$13.3M

Previous: $50.1M-126.5%
Operating Income

-$8.7M

Previous: $38.3M-122.7%
Gross Profit

$5.6M

Previous: $66.7M-91.6%
Cash & Equivalents

$263M

Previous: $172M+52.6%
Total Assets

$1.12B

Previous: $1.12B+0.5%
Stock-Based Comp

$2.2M

Previous: $1.9M+15.8%

Revenue & EPS history

Metallus · Revenue · Quarterly

$317M

Q3 2022-7.8%vs Q3 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Metallus · $187M total across 3 segments · Q3 2022

  • Industrial
    $146M-19.8%
  • Energy
    $36M+76.5%
  • Other
    $4.8M-38.5%

Forward guidance

Fourth-quarter shipments are expected to be slightly lower than the third quarter. Melt utilization is expected to average approximately 50 to 60 percent during the fourth quarter. Capital expenditures are expected to be approximately $10 million to $15 million in the fourth quarter.

Tailwinds

  • Demand remains strong across the company’s end markets with a customer order backlog in excess of 300,000 ship tons and the majority of production capacity allocated to customers in 2023.
  • Annual customer pricing agreements are currently being negotiated for 2023.
  • Negotiations are progressing positively with an expected increase in 2023 base prices.
  • In 2023, melt utilization rates are expected to be much improved compared with the second half of 2022.
  • The company anticipates a significant insurance recovery related to the incident

Headwinds

  • Fourth-quarter shipments continue to be negatively impacted by available inventory following the July melt shop incident.
  • Surcharge revenue per ton is expected to be sequentially lower in the fourth quarter as a result of a market decline in scrap prices.
  • Melt utilization is expected to average approximately 50 to 60 percent during the fourth quarter, reflective of a continued monthly ramp-up of production through the end of this year following the July incident, as well as planned annual shutdown maintenance.
  • The remainder of this year’s planned annual shutdown maintenance will be completed in the fourth quarter at a cost of approximately $3 million.
  • The company expects fourth-quarter adjusted EBITDA to continue to be challenged, excluding any potential business interruption insurance recovery related to the July melt shop incident.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+1.6%

Avg return

Earnings day

-0.7%

Avg return

5 days after

+1.8%

Avg return

30 days after

42%

22 / 52 earnings

Positive

+80.9%

Q4 2015

Best reaction

-16.6%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%-0.6%+8.3%
Q4 2025-16.6%-18.1%-29.2%
Q3 2025-1.7%-6.8%+0.9%
Q1 2025-11.1%+2.5%+7.4%
Q4 2024-8.0%-10.6%-13.4%
Q3 2024-4.1%-3.6%+0.4%
Q2 2024-8.6%-12.6%-20.5%
Q1 2024+10.7%+11.3%+9.6%
Q4 2023-0.2%+1.3%+9.1%
Q3 2023-2.5%+0.0%+1.8%
Q2 2023-9.6%-6.3%-3.3%
Q1 2023+5.4%+6.9%+12.0%
Q4 2022+1.7%+1.0%-0.9%
Q3 2022+12.2%+14.1%+16.4%
Q2 2022-2.9%-1.1%-12.1%
Q1 2022-9.5%-13.8%+18.5%
Q4 2021+14.3%+16.2%+56.3%
Q3 2021+5.3%+10.2%+0.6%
Q2 2021+12.0%+31.8%+4.2%
Q1 2021+0.2%+11.1%+15.5%
Q4 2020-4.4%-0.7%+28.4%
Q3 2020+1.8%+15.5%+29.2%
Q2 2020+2.7%+5.9%-8.7%
Q1 2020+30.0%+26.2%+70.8%
Q4 2019-5.9%-7.8%-41.0%
Q3 2019+13.2%-13.9%+8.7%
Q2 2019-3.0%-9.9%-25.3%
Q1 2019+6.7%-1.7%-28.8%
Q4 2018+12.0%+3.1%-15.3%
Q3 2018+15.4%+5.4%+0.5%
Q2 2018-14.9%-23.8%-23.6%
Q1 2018+0.6%-2.2%+1.9%
Q4 2017-11.2%-14.3%-12.7%
Q3 2017-12.4%-22.1%-17.6%
Q2 2017-2.0%+1.1%-5.7%
Q1 2017-8.3%-9.9%-16.6%
Q4 2016+13.9%+20.0%+11.7%
Q3 2016-4.2%-7.9%+48.7%
Q2 2016-15.0%-22.7%-15.7%
Q1 2016-1.4%
Q4 2015+80.9%
Q3 2015-2.8%
Q2 2015-6.5%
Q1 2014+1.9%
Q1 2015+6.7%
Q4 2014-3.4%
Q4 2012-3.4%
Q3 2013-0.6%
Q3 2014-0.3%
Q4 2013-1.9%
Q2 2013-1.9%
Q2 2014+10.4%
Q1 2013

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro