Timken Co has reported “a lower quarterly profit and cut its full-year outlook yet again, citing a ‘weaker-than-expected economic recovery’ that it said had depressed demand for its ball bearings and specialty steel across all markets,” reports Reuters.
The news had a drastic impact on the company’s shares which declined more than 5 percent in pre-bell electronic trading.
“The Canton, Ohio-based company posted a third-quarter profit of $52.2 million, or 54 cents a share, down from $80.9 million, or 83 cents a share, in the comparable period last year.”
“Sales fell 7 percent to $1.1 billion. Timken said it now expects full-year 2013 sales to be down 13 percent compared with a year before.”
The steel billet cash price saw a 13.2 percent increase on Wednesday, October 23, reaching $215.00 per metric ton on the LME and making it the biggest mover for the day. At $230.00, the 3-month price of steel billet finished the market day on the LME up 4.5 percent.
Chinese steel closed mixed yesterday. The price of iron ore 58% fines from India were range bound. Chinese HRC ended the day, after the 1.7 percent drop yesterday. The price of Chinese slab declined 1.4 percent.
The US HRC futures contract 3-month price held steady around $650.00 per short ton. The US HRC futures contract spot price held steady around $651.00 per short ton.