TimkenSteel reported second-quarter 2020 net sales of $154.0 million and a net loss of $15.3 million. In the same quarter last year, net sales were $336.7 million with net loss of $11.9 million.
Net sales of $154.0 million decreased 54 percent and 41 percent compared with the prior-year and sequential quarters, respectively. In a press release, the company said the decline in sales was primarily a result of the dramatic reduction in market demand stemming from the COVID-19 pandemic. Additionally, the decline in sales compared with the prior-year quarter was impacted by a 29 percent decrease in the average raw material surcharge per ton as a result of lower scrap and alloy prices.
Ship tons of 108,700 declined 56 percent from the prior-year second quarter as a result of lower demand across all end markets, especially in automotive markets, which experienced significant COVID-19-related production disruptions during the quarter, the company said.
Manufacturing costs were favorable compared with the prior-year and sequential quarter primarily from significant cost reduction actions, partially offset by the unfavorable impact of weak demand on production levels and fixed cost leverage.
As for an outlook, the company said the extent and duration of the COVID-19 pandemic remains uncertain, as does its impact on the overall economy and TimkenSteel’s customers. For that reason, the company will not provide guidance on shipments and earnings for the third quarter.