AK Steel Holding Corp. (AKS) Posts Smaller Q1 Loss

April 23, 2013 8:33 AM EDT Send to a Friend
AK Steel Holding Corp. (NYSE: AKS) reported Q1 EPS of ($0.07), $0.04 better than the analyst estimate of ($0.11). Revenue for the quarter came in at $1.37 billion versus the consensus estimate of $1.39 billion.

The company said its average selling price for the first quarter of 2013 was $1,062 per ton, a 7% decrease from the first quarter of 2012, but a 5% increase from the fourth quarter of 2012. The higher average selling price for the first quarter of 2013 compared to the fourth quarter of 2012 was primarily due to a higher value-added product mix and higher carbon spot market prices, partially offset by lower selling prices for electrical steel products globally. The lower average selling price for the first quarter of 2013 compared to the first quarter of 2012 was primarily due to lower spot market prices for carbon steel products, reduced raw material surcharges and lower selling prices for electrical steel products globally.

"AK Steel's results reflect significant progress for the company during the first quarter," said James L. Wainscott, Chairman, President and CEO. "We experienced increased shipments to the automotive market, a higher-priced product mix, and lower costs, primarily for raw materials."

Mr. Wainscott added, "While the automotive market was a bright spot for our business, markets remained challenging for some products, particularly those in the spot market. Simply put, global steelmaking capacity continues to exceed demand. Additionally, the cyclical improvement in spot market pricing we normally see during the first quarter did not materialize and is expected to occur later this year."

Second Quarter 2013 Outlook
Consistent with its current practice, the company said that it will provide detailed guidance for its second quarter results in June. In advance of this guidance, the company indicated that it will have a planned seven-day maintenance outage at its Middletown blast furnace in the second quarter, which is the first major maintenance outage that has been required for that furnace since a major reline in 2009. Total maintenance outage costs, including the Middletown blast furnace, are expected to be about $21 million in the second quarter of 2013, compared to $1 million in the first quarter of 2013. The company expects the increased maintenance outage costs in the second quarter to be mostly offset as a result of lower costs, primarily for raw materials.

For earnings history and earnings-related data on AK Steel Holding Corp. (AKS) click here.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Earnings

Related Entities

Earnings

Add Your Comment