Universal Stainless outlook positive on strong backlog

US specialty stainless producer Universal Stainless anticipates a positive year, largely thanks to its record backlog.

Universal Stainless reported first quarter sales totalled $60.3mn, down by 5.4pc from $63.7mn in the same year earlier period due to weaker stainless steel and premium alloy demand.

First-quarter bookings and backlog were a record $130.1mn at the end of the quarter, up by 44pc from a year earlier and a 3.1pc gain from 31 December.

Chief executive Dennis Oates said the "record backlog and the increasing benefits of our new bar cell" at its Dunkirk, New York, facility support the company's positive outlook.

Aerospace industry is the company's largest end market, consisting of 70.7pc of total sales. First quarter sales for the segment were $42.6mn, up from $36.2mn from the first quarter of 2018.

Premium alloy sales totaled $9.4mn compared with $11.8mn in the first quarter of 2018. Premium alloys represents 15.5pc of total sales.

The company's profit for the first quarter narrowed to $1.2mn from $2.1mn in the first quarter of 2018.

Combined shipments declined by 8.9pc to 10,160t in the first quarter from a year earlier.

Universal Stainless & Alloy Products, Inc., headquartered in Bridgeville, Pennsylvania, manufactures and markets semi-finished and finished specialty steels, including stainless steel, nickel alloys, tool steel and certain other alloyed steels.