On the quarter, the company posted net sales of $49.6 million, down from $52.3 million in the same quarter last year.

The company said that although sales to the aerospace market rose 1 percent and heavy equipment market sales were up 35 percent, sales to the power generation and oil & gas markets fell by 23 percent and 24 percent, respectively.

"Market conditions were challenging in the second quarter," said Chairman and CEO Dennis Oates in a statement. "Commodity prices, especially for nickel, deteriorated further. Oil and gas demand continued to plummet due to market conditions. Customers worked down inventories overall and postponed purchases with the prospect of lower surcharges in coming months. Competition for existing orders intensified," he said.

Oates said the conditions led to lower market demand and volume throughout the specialty steel sector. And the company's current backlog is pointing toward a challenging third quarter as well, he added.

"We have taken steps to reduce spending in line with lower activity levels, and to improve yields and generate cash. There is an emerging view among customers of a potential improvement in demand in the fourth quarter and growing optimism about 2016. We remain committed to our transformation to more higher value products. To date this year, we have successfully launched seven new products with associated customer approvals and made significant strides in continuing to develop our organization for the future. This progress combined with our team's relentless efforts enabled us to grow our premium alloy sales nearly 34 percent so far this year."

Overall, the company's net sales are up 7 percent in the first six months of 2015 over the same period last year, rising to $105.6 million. However, the first half of the year has been unprofitable, posting a net loss of $231,000.   

More details on Universal Stainless & Alloy Products Inc.'s second-quarter results are available by clicking here.