"Our second-quarter operating results reflect the impact of continued weakness in energy and some industrial end markets, which has our plants operating at below 50 percent melt utilization," said Ward J. "Tim" Timken Jr., chairman and CEO.
 
"We preserved shareholder value in this difficult market and generated positive cash flow by carefully managing working capital and taking action to reduce costs. We operate with a continuous improvement mentality that is fueling an ongoing focus on cost reduction. At the same time, we're also pushing forward with a growth strategy that's centered on some of our most differentiated and highly profitable products and services, which positions us for a strong rebound."
 
For the quarter, the company posted net sales of $278.2 million, down 37 percent from the same quarter last year when it recorded sales of $442.2 million. It shipped about 212,000 tons, a decrease of 26.8 percent over Q2 2014.
 
The company said the lower volumes were due in part to the downturn in the energy sector, with the U.S. rig count having been cut in half. That, it said, led to lower demand for energy and related industrial products
 
The company's industrial and mobile segment posted net sales of $211.1 million, including surcharges of $29.2 million, which was a decrease of 17.1 percent over the second quarter of 2014. The decline was driven primarily by lower surcharges and reduced demand in the industrial market sector, it said.
 
The company's energy and distribution segment posted net sales of $67.1 million, including surcharges of $9.2 million, which was a 64.2 percent decrease over the second quarter of the prior year, driven primarily by lower surcharges and reduced demand for energy-related products.

More details on TimkenSteel's second-quarter earnings can be found here.