Steel Mills

AK Steel Cuts Year’s Loss by More than Half

January 28, 2014

AK Steel reported net income of 35.2 million for fourth quarter 2013. Sales totaled $1.46 billion in the quarter on shipments of 1.42 million tons, compared to net sales of $1.42 billion on shipments of 1,406,100 tons for Q4 2012. The increase was attributed to stronger demand in auto sales that was partially offset by lower carbon shipments to the spot market.

The average selling price for the fourth quarter was up 2 percent to $1,011 per ton on year-over year basis primarily due to higher carbon spot market prices and a favorable mix of value added products. Sequentially, average price dropped 4 percent from third quarter.

For the full year 2013, AK Steel had a net loss of $46.8 million compared to a net loss of 1.0 billion in 2012. Sales were down 6 percent to 5.57 billion on decreased shipments of 3 percent at 5.275 million tons. The average selling price dropped 3 percent from the previous year to $1,056/ton. The change was attributed to lower spot market prices in the first half of 2013, lower electrical steel selling price, and reduced raw material surcharges. AK Steel ended the year with a strong liquidity position of $845 million.

A mechanical failure at the Middletown Works blast furnace in June resulted in a pre-tax loss of $4.3 million in 2013.

Chairman, President and CEO James Wainscott said he was delighted with fourth quarter results. Consistent with its current practice, the company said that it will provide detailed guidance for its first quarter results of 2014 in March.