CANTON, Ohio: February 16, 2017 -TimkenSteel (NYSE: TMST, timkensteel.com), a leader in customized alloy steel products and services, today reported fourth-quarter net sales of $214.7 million and a net loss of $67.0 million or minus $1.52 per share. This compares with net sales of $206.6 million and a net loss of $13.8 million or minus 31 cents per share in the same quarter last year, and net sales of $213.8 million and a net loss of $22.2 million or minus 50 cents per share in the third quarter of 2016. For the full year, net sales were $869.5 million and net loss was $105.5 million or minus $2.39 per share. This compares with net sales of $1,106.2 million and a net loss of $45.0 million or minus $1.01 per share for full-year 2015.
Fourth-quarter and full-year 2016 results include the impact of the adoption of the mark-to-market method of accounting for pension and other post-employment benefit (OPEB) plans. This method recognizes actuarial gains or losses in the year incurred rather than amortizing them over future years. The net impact of the mark-to-market adjustment in the fourth quarter and full year was a net loss of $53.1 million and $49.6 million respectively, primarily due to lower interest rates. Management believes excluding the impact of mark-to-market gains or losses from financial results better reflects operating performance, and the change has no impact on current-year cash flow or on benefits paid to plan participants. Excluding the impact of mark-to-market, fourth-quarter adjusted EBITDA(1) was income of $1.5 million compared with adjusted EBITDA(1) loss of $7.4 million for the same period a year ago, and income of $7.9 million sequentially.
For the full year, net sales were lower than 2015 by 21.4 percent. Adjusted EBITDA(1) for the full year was $24.0 million, compared with adjusted EBITDA(1) loss of $1.5 million in the previous year. The improvement was driven primarily by focused execution of cost reduction tactics and favorable timing impact from raw material spread. Cash generated from net operating activities was $74.4 million for the year.
“Throughout 2016, we structurally improved the operating performance of the company in the face of weak global commodity markets and high customer inventory levels. We used that down period to aggressively manage costs, generate cash, increase our share in key markets and broaden our portfolio of business,” said Tim Timken, chairman, CEO and president. “We expect 2017 to be a better year, starting off with projected sales in the first quarter that are higher than the typical
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The following information was filed by Timkensteel Corp (TMST) on Thursday, February 16, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: TMST CIK: 1598428 Form Type:10-K Annual Report Accession Number: 0001598428-17-000026 Submitted to the SEC: Thu Mar 16 2017 9:01:21 AM EST Accepted by the SEC: Thu Mar 16 2017 Period: Saturday, December 31, 2016 Industry: Steel Works Blast Furnaces And Rolling Mills Coke Ovens