Metallus(US:MTUS)2019-05-03 18:54Financial Performance - Net income for the first quarter of 2019 was $42 million, an increase of $6 million compared to the first quarter of 2018[8] - EBITDA for the first quarter of 2019 was $263 million, an increase of $5 million compared to the first quarter of 2018[8] - Gross margin expanded by 230 bps (23%) over the first quarter of 2018 and 120 bps (12%) over the fourth quarter of 2018[8] - Base sales improved $110 per ton over the first quarter of 2018 and $50 per ton over the fourth quarter of 2018[8] Market Outlook - The mining market continues to have a strong growth outlook[17] - Industrial equipment's growth outlook continues to be flat[17] - Rail equipment growth remains positive[17] - The agriculture market outlook has softened[17] - Drilling activity is slightly decreasing in the oil and gas market due to a large number of uncompleted wells[17] Outlook - Second-quarter 2019 shipments are expected to be similar to the first quarter of 2019, with a 12% lower production[25] - Adjusted EBITDA is projected to be between $0 and $10 million for the second quarter of 2019[25] - Actions are being implemented that are expected to drive improved profitability of approximately $50 million on an annualized basis, with approximately $30 million being realized in the remainder of 2019[25] - 2019 capital spending is projected to be approximately $50 million[25]