TimkenSteel Corp reported significant declines in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, net sales were $227.2 million, a decrease of 35.9% from $354.2 million in Q3 2023. The nine-month figures also reflected a downturn, with net sales of $843.5 million, down 18.4% from $1,034.3 million in the prior year.
The gross profit for Q3 2024 plummeted to $12.1 million, a 76.3% drop from $51.0 million in Q3 2023. For the nine months, gross profit decreased by 40.2% to $86.8 million from $145.1 million. The declines were attributed to lower shipment volumes, unfavorable price/mix, and increased manufacturing costs, particularly in the industrial and aerospace sectors.
TimkenSteel experienced a net loss of $5.9 million in Q3 2024, compared to a net income of $24.8 million in the same quarter of 2023. For the nine months, net income fell to $22.7 million from $68.1 million in 2023. Basic earnings per share for Q3 2024 were $(0.13), down from $0.56 in Q3 2023, while for the nine months, it decreased to $0.52 from $1.55.
The company’s liquidity position remained strong, with cash and cash equivalents totaling $254.6 million as of September 30, 2024, down from $280.6 million at the end of 2023. Total liquidity was reported at $496.8 million. TimkenSteel also received $45.5 million in government funding for artillery shell production during the nine months, contributing to its cash flow.
Capital expenditures for the nine months ended September 30, 2024, were $49.1 million, focusing on safety improvements and equipment automation. The company repurchased approximately 1.8 million shares at a cost of $34.1 million during this period, with $106.3 million remaining under its authorized share repurchase program.
In terms of strategic developments, TimkenSteel has been actively managing its pension obligations, including a significant annuitization of its Salaried Plan in May 2024, which settled approximately $121 million in pension obligations. The company also reported a loss of $0.8 million in Q1 2024 due to a full remeasurement of its pension obligations.
Overall, TimkenSteel's financial results for 2024 reflect challenges in market conditions and operational performance, leading to substantial declines in revenue and profitability compared to the previous fiscal period.
About TimkenSteel Corp
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