TimkenSteel Corp. lost money for its fourth quarter and full year.
But fourth quarter earnings beat estimates by analysts who expected a larger loss.
The Canton steel maker on Thursday reported losing $25.5 million, or 58 cents per share, on revenue of $206.6 million for the fourth quarter ending Dec. 31. A year ago, TimkenSteel had a profit of $16.4 million, or 36 cents per share, on revenue of $408.3 million.
While TimkenSteel’s earnings beat analyst estimates, revenue fell short.
For the full year, TimkenSteel said revenue fell 34 percent to $1.1 billion from nearly $1.7 billion for fiscal 2014. The company lost $73.7 million, or $1.65 a share, compared to a profit of $104.4 million, or $2.27 a share in 2014.
Stocks closed at $5.15 per share, up 17 cents, at the end of trading Thursday; the earnings were posted shortly afterward.
“While we continue to feel the impact from weak global commodity markets and high customer inventory levels, our cost reduction efforts and pace of new business from innovation reduced the losses we anticipated in the quarter,” Ward “Tim” Timken, chairman, chief executive officer and president, said in a news release.
Fiscal 2016 is expected “to be another challenging year, so our focus will continue to be on cash generation,” Timken said.
TimkenSteel expects first quarter shipments will be five percent higher than in the fourth quarter. Automotive market demand remains strong but oil and gas markets are expected to be weak, the company said.
The company also expects it will lose between $10 million and $20 million for the quarter as well in part because of pricing pressure from imports as well as what it called weak market dynamics.
TimkenSteel said it expects 2016 capital spending to be $45 million.
Company executives have scheduled a conference call with industry analysts at 9 a.m. this Friday. The public can listen in by dialing 877-201-0168 or via live webcast at investors.timkensteel.com
Jim Mackinnon can be reached at 330-996-3544 or firstname.lastname@example.org.