USAP - Universal Stainless expects Q3 sales to fall 12% sequentially on lower shipment volume

• Universal Stainless & Alloy Products ( NASDAQ: USAP ) said Wednesday it expects to report Q3 net sales of $46.2M, down 12% sequentially but 24% higher Y/Y, as shipment volume was ~20% lower sequentially.
• Premium alloy sales are expected to account for 17% of total sales.
• Universal Stainless ( USAP ) expects to report Q3 net loss of ~$0.14/share vs. net loss of $0.16/share in Q2.
• Lower shipment volume was due to residual effects of the liquid metal spill in Q2, ongoing labor and supply chain issues causing intermittent production outages, and a spike in COVID-19 cases at its test labs late last month.
• Also, a sharp decline in commodity prices in recent months resulted in a negative misalignment between product surcharges and material costs totaling ~$1.5M.
• "We are disappointed that operational setbacks prevented us from reaching our goals for the quarter, even as our backlog reached a new record of $246M at the end of Q3," said CEO Dennis Oates.

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