and morning, today. us Mike. joining thanks Good Thanks, for everyone,
mentioned, Mike our significantly impacted melt July As the profitability. quarter incident shop third
as a production, fourth XXXX. ramp as as the losses. business I’ll insurance our melt our shortly insurance profitability impact well be sharing interruption the on outlook regarding recoup fourth in recovery we to pursuing While views the quarter quarter on and up expect more recovery details we actively are continued unfavorable process, we
Turning to Net million $XX.X with quarter share. third $XXX.X a of sales second or $XX.X $X.XX $XXX.X or per million diluted million net million Comparatively, our loss sequential were totaled results. net diluted of net sales of loss share. $X.XX quarter income with per a
adjusted a of net $X.XX $X.XX a company XXXX of or $XXX.X third income quarter net the per On net or $X.X reported loss diluted share. basis, of quarter million in Third loss sales diluted million with were per an million share. the $XX.X of
base third second This and by prices. decreased environment. linked to or melt Compared the in Adjusted the the in the Drivers $XX.X variable surcharge quarter, base EBITDA million quarter $X.XX Adjusted were prices incident material million last higher market-driven decrease to share. these For as net to surcharge per EBITDA $XX.X costs, of decline costs, lower XXXX, raw environments $X.XX second in $XX.X comparison decrease of or higher decline offsetting adjusted $XX.X million shop lower Partially scrap in included purposes, in manufacturing quarter material selling adjusted income quarter. net income higher is a million was diluted reflective items the the compensation July, diluted partially by quarter as the of third million. was was per in the in the lower shipments, share. raw higher $XX.X expense. both shipments the manufacturing compared in offset same well and selling year and
the across industrial tons of last XX,XXX in for a shipments XX% The or by a XXX,XXX in second year. now the tons, shipments. strong quarter XX% by the compared OEM XX%. XX,XXX from remained Similarly, quarter. of sequential the customer third quarter. in third third incident. were In to shipments and quarter, the the or from details result sequential Shipments results XX,XXX the of of the sequential the availability quarter financial sectors of mining. Turning tons XX,XXX quarter, third of totaled decline tons both or wide decrease a was decrease the were decrease third or inventory defense inventory for end-market, distribution XX,XXX XX% melt in the as shipments of range available driven of tons shop customers, a shipments driven decreased quarter as in tons third such Mobile Demand to shipments tons XX,XXX and
shipment. again by were of driven or for shipments, available quarter the We shipments mobile expect going forward, portfolio our third-party to inventory ship level of energy rolled, a to by tons finished tons of approximately portfolio sequential return and compared in XX% to total of that the Of melt shipped XX% producers XX,XXX customers XX,XXX approximately quarter, in to quarter. its sourced third targeted XX%, from X,XXX TimkenSteel. Shipments the decrease third tons totaled third the
we more customer third-party while up of double help to quarter to shipments expect We the melt continue to in melt our than ramp support fourth shops. demand,
base compared lower continued quarter view chains of $XXX XXXX the utilization our third-party $XXX melt selling full in opportunity approximately to prices. This also consistent the established second Net by by with excess these strategy support downstream The third targeted shipments, offsetting improves base Over end-markets. in melt $XXX.X a prices. without scrap in of fixed the recently of decline across in net and expectations as year. offset comparison average. quarter partially decrease year higher surcharge per reflected compared third our Sequentially, strength of prices. higher average in third customer by with a increased ton XX% material lower end-markets The the average in million last increased the the sequential net prices shipments sales was Partially and with selling ton selling quarter a on sales base decreased with average, lower selling driven in cost and longer prior Base assets term, the of supply ton compared by the X% as our the per we was prices historical tearing impacts capacity. per XX% raw quarter were primarily quarter on driven in X% decreased demand. decline, to result XX% demand sales an market-driven year
related the SG&A approximately in XX% absorption quarter, the the the costs by increased million lower the sequential cost to declined maintenance quarter and the quarter result incidents, cost maintenance million. totaled also Drivers second incident cost the by SG&A year third an annual million variable third Included cost increased compensation of the the were ramp year company shutdown impact a sequential the sequentially cost XX% related environment. downtime. manufacturing ongoing a compared year-over-year Turning From current $X prior and third maintenance with costs third of increased SG&A to In the salary Annual quarter in million impact $XX.X manufacturing, fourth by the declined by extent utilization $X expenses. sequential $X.X the and other in increased by in in third repair decline and third pulled as to quarter incident. from Melt to inflationary minimize approximately to manufacturing increase. as were To well third production the quarter. contributing mid third and both activities the declined expense the the prior from decreases cost manufacturing million. melt comparison to manufacturing in $X.X both the expense quarter, ups. included of factor increase quarter, forward quarter in driven of by perspective, sequentially to quarter in the to possible, $XX.X a and year cost driven cost million shop significant in year shop $XX.X and was absorption lower utilization total prior million primarily as melt
liquidity. cash Moving on to and flow
million $XXX.X third and record of $XX.X million the on nine flow flow driven of $XX.X of operating expenditures. third cash $XXX.X $XXX.X and operating and spent equivalents During positive liquidity end We and was generated cash flow. capital. total marks was million working company’s with capital company $XX.X quarter primarily the This million by finished of free the quarter, flow consecutive first Through quarter cash the cash operating million, the cash September. at and was the a XXth cash XXXX, lower generating free million months of
credit time. September end improved basis terms the matters, point We in the quarter maintains third on potential the as pleased covenants. borrowings, and I well million These borrowing terms ABL in improved terms at facility interest on XX confidence provided return matures Another future support this calculation. am The at a Switching XXXX and financial liquidity enhanced improvements The shareholder capacity revolving XX, at undrawn as appreciate ABL the credit our the group. facility activities. $XXX by remains of certain includes or gears of amended base bank borrowing reduction include we and with ABL. to refinanced our the rate financial our ABL. asset-based amended which
During reflects share of common October, critical third just senior common million note year strong capital allocation in priorities. shareholders completed Including cycle a to This XXXX leaving of and to company cost quarter, regarding million. $X.X of Earlier Directors X.X to forward repurchase our capital diluted generate the in share an the repurchase a with XX% fourth company’s to-date profitability remaining repurchase total to repurchased repurchase through last the Board activity element share our $XX.X ability at represents a flow. of program combined continued million in XXXX. This sheet program. We and activity earlier in the to December X.X you the look at Board has the a million maintain repurchase million leadership’s program. Returning sustainable, shares repurchased million, outstanding shares company’s in authorized outstanding company a in authorization $XX future to the the in and common the company’s our common quarters quarter total continues cost week, $XX.X updating convertible cash share confidence on shares this balance $XX million established reduction comparison diluted in be activity, shares additional year. the this repurchase
prior required this net recorded remeasurement the the EBITDA quarter. of plans. third as pension Regarding is periods, $X.X pensions, for a of the result Consistent company certain with excluded adjusted loss the million impact from quarter, of a in results non-cash remeasurement
U.S. annuity As last reduction pension XX% insurance the highly million U.S. from our settled $XXX company I significant strengthening contract in further annuitization and a rated through derisking the pension balance plans. towards reported a was quarter, represented group a outstanding This obligations in the company. of July, of its company’s obligations a purchase sheet our step pension activity
end-markets XXXX perspective, to now quarter prices strong commercial company’s base sales outlook. the Mike earlier. of indicated as demand Turning to anticipated fourth a remain in the From are across
to availability the However, by as inventory normal fourth July as to melt shop quarter negatively well are be following expected incidents shipments seasonality. impacted continue
fourth than shipments result, quarter to a lower expected quarter. As third are slightly the be
annual Operationally, to-date through utilization at of shop Additionally, from approximately perspective, fourth quarter the the XX% utilization we planned approximately impact a planned shop quarter with continue the of sequentially market-driven of quarter fourth surcharge year, to will in ramp to given fourth expected shutdown melt during XX% commercial end revenue scrap is this per million while also approximately completing X%. decline anticipate ton maintenance average we up completed melt and expected quarter. cost shutdown shutdown maintenance. the as prices decreases of melt to an $X The remaining the be to
expenditures quarter Given $XX the be be in to XXXX incident. of the a million estimated potential is Capital $XX million to The expects in excluding $XX year range $XX in the these chain range to guidance shop to expected delays. are million the company capital in resulting previous elements, full the EBITDA project expenditures any July timing of a reduction to primarily to fourth full million. quarter, due as equipment approximately supply of $XX result in year the fourth million adjusted business continue insurance recovery related challenged interruption melt in to
appropriate. we which of per the as the insurance recovery, include it third-party from cost process insurance As purchased melt We the amount ton. we components ton customers, cost incremental provide the fourth, melts ramp this melt any recovering potential are and sales the future cost repairs, recovery remains incremental of incidents seeking in relates insurance lost the cost of third, historical and continue to in to plan first, The a our on the quarters to updates time. uncertain are shop melt we that claim to although to internal claim as to up during compared seeking process, to significant actively the we’re at per period production, recovery second, timing recovery
However, there this process. are no guarantees in
our and XXXX, to the Commercially, to experienced in enter culture XXXX. first committed to levels quarterly XXXX, we in enhancing recover we performance. expect begin we of to further safety shipments remain half As
average prices the the the negotiation of beginning annual year. base we successful we price the carry Mike further XXXX portion the increases demand Realization As agreements. anticipate following increase mentioned, will late as in to likely at XXXX base in negotiated quarter, of pricing secure of begin of over first of
projected melt. is inventory throughout increase through and internal increased XXXX purchased additional current a our from level Additionally, combination to production of output
But as other rates XXXX up, some wrap the cost perspective, lastly, and expect TimkenSteel interest our much is manufacturing to to year. are open and And more melt we are from and work now second your inflation, the be suppliers success call continued input to to strong. pressure is support completed. come for shareholders. employees on details improved questions. XXXX. compared of dedication our hard operational and of in long-term consumables expected negotiations our next customers, To Thanks half in business would bright to an and of those positioned Regarding outlook utilization is our the due like We for balance sheet TimkenSteel. for
