TimkenSteel has reported April-June 2022 quarter net sales at USD 415.7 million and net income of USD 74.5 million as compared net sales of USD 352.0 million and net income of USD 37.1 million in January-March 2022 quarter. Net sales were USD 327.3 million with net income of USD 54.0 million in April-June 2021 quarter. TimkenSteel said “The increase in net sales was primarily driven by an increase in average raw material surcharge per ton as a result of higher scrap and alloy prices, as well as higher ship tons and base sales prices.”

TimkenSteel’s shipments increased to 208,900 tons, up by 12,500 tons from January-March 2022 quarter driven by higher industrial and energy shipments, the company said. Compared with the prior-year second quarter, ship tons decreased 2% with decreases in industrial and mobile partially offset by higher energy demand.

Manufacturing costs increased sequentially by $13.0 million primarily driven by higher maintenance and variable compensation expense. Melt utilization was 84 percent in the second quarter of 2022, an improvement from the first quarter and consistent with the prior-year second quarter. Compared with the prior-year second quarter, manufacturing costs increased $25.9 million primarily driven by inflation and an increase in maintenance costs.

TimkenSteel expects expects adjusted EBITDA to remain strong in the third quarter with steady customer demand. It said “Third quarter adjusted EBITDA is anticipated to be lower than the second quarter primarily driven by a market decline in scrap prices, which is expected to reduce surcharge revenue per ton, as well as the impacts from a recent operational disruption, which it estimates will result in melt shop downtime through mid-August.”

TimkenSteel is an independent company with a century-long history. It began as the steel business of The Timken Roller Bearing Company, founded by carriage maker and inventor Henry Timken and his two sons. TimkenSteel has its roots in continuously improving steel for one of the most demanding applications, bearings.

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