NEW YORK TimkenSteel Corp.s sales and earnings rose in the second quarter ahead of its separation from former parent Timken Co., a positive first sign for its full-year targets.
The Canton, Ohio-based special bar quality (SBQ) and seamless tube producer posted net income of $28.6 million for the three months ended June 30, up 13 percent from the same period last year on sales that jumped 24.9 percent to $442.2 million. Sales by TimkenSteels energy and distribution segment jumped 44.1 percent to $187.5 million from a year earlier, while the industrial and mobile segments sales increased 13.7 percent to $254.7 million.
Adjusted earnings before interest and taxes (Ebit) totaled $39.4 million, up 25.5 percent from $31.4 million in the same comparison.
The manufacturer, which sells mostly to industrial and energy sectors, saw second-quarter shipments increase 21.4 percent to 289,000 tons.
"Our results demonstrate our ability to drive shareholder value by selling into more-profitable niche markets and leveraging our manufacturing capabilities with strong structural performance," chairman, president and chief executive officer Ward J. "Tim" Timken Jr. said in the companysearnings report.
TimkenSteel projects sales growth of 20 to 25 percent over its 2013 sales of $1.4 billion, with capital spending of up to $105 million in the next six months. The company recently announced plans to open a $40-million continuous heat-treat facility, which could help it create highly customized steel (amm.com, July 17), and a new jumbo vertical bloom caster could launch in the third quarter, with benefits expected in 2015.
Last-in, first-out (Lifo) accounting expenses could balloon to between $14 million and $18 million in the second half vs. $2 million over the past six months, TimkenSteel said.
Bearings maker Timken Co. also reported earnings July 31, noting that the spinoff went smoothly, on time and within budget.