Timken Steel expects Q3 ship tons to be similar to those experienced in Q2 with a melt utilization rate at or above 85pc. The company’s order books are full for Q3 and Q4 but periodic or unexpected auto sector outages, production changes due to supply chain constraints could dampen shipment in Q3. The strong finished steel pricing environment along with the continued economic recovery has the company anticipating Q3 revenue levels the same or better than Q2.
Timken steel shipped 407,600nt (369,769mt) in H1 2021 with net sales of $600.9mn in the six months, up 27pc and 45pc respectively, against the same period a year ago.
Shipped tonnage rose by 97pc to 214,200nt in Q2 2021 against the same year-ago quarter despite a 16,000 decline in shipments to the auto sector due to the semiconductor shortage as industrial and energy shipments gained.
Timken sold 93,600nt in the mobile sector, 111,900nt in industrial, and 8,700 in energy with corresponding net sales of $132.9mn, $173.6mn, and $13.2mn in Q2 2021.
Manufacturing costs enhanced primarily driven by higher melt utilization and the effect of cost reduction programs.
Sales rose by 113pc to $327.3mn in Q2 2021 against the same year-ago quarter and 20pc against the preceding quarter driven by industrial sector demand.
Timken achieved high profitability with a net income of $54mn in Q2 2021 compared to a net loss of $15.3mn in the year-ago quarter.