Steel Mills
Dearborn Acquisition Boosts AK Steel Earnings
Written by Sandy Williams
November 4, 2014
AK Steel reported a net loss of $7.2 million for the third quarter of 2013 due to one-time costs associated with the acquisition of Severstal Dearborn. Excluding the acquisition related costs, AK Steel’s adjusted net income was $16.4 million.
Net sales were $1.59 billion on shipments of 1,462,900 tons. Shipments increased from 1,242,400 tons in Q3 2013 and 1,397,500 tons in Q2 2014 due to the addition of Dearborn and higher shipments of steel to the automotive and manufacturing markets. Steel shipments increased across all product categories on a year-over-year basis.
Average selling price decreased slightly from second quarter to $1,089 per ton. Costs of products sold were higher due to the Dearborn acquisition and an unplanned maintenance outage at the Ashland Works blast furnace. The company incurred costs of $23.2 million for the Ashland outage and $1.1 million for planned outages in third quarter.
“AK Steel’s third quarter financial performance exceeded our expectations,” said James L. Wainscott, Chairman, President and CEO of AK Steel. “Our continuing trend of posting adjusted net income provides us with a solid foundation for future growth in earnings and cash flow.”
Results for third quarter and the nine months ending September 30, 2014 include net sales of $90 million and operating profit of $2.1 million from the Dearborn acquisition.
The fourth quarter outlook will be discussed in the company earnings call but results are expected to be impacted by a planned outage at Ashland Works. The maintenance outage, which began in late October, includes a reline of the blast furnace hearth and will last approximately 28 days.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Lagging US market hits SSAB earnings
But the Swedish steelmaker is optimistic about a rebound
Strong growth appetite has Nucor eyeing Big River’s EAF assets
Nucor Corp.’s chief executive didn’t shy away from discussing the company’s interest in potentially acquiring the electric-arc furnace assets of U.S. Steel on Tuesday. An analyst on an earnings conference call asked about Nucor’s appetite for M&A given its strong cash position – $4.1 billion at the end of 2024. Chair, President, and CEO Leon […]
Nucor CEO bullish on Trump tariffs and policy changes ‘in the coming hours and days’
“More needs to be done to ensure that these illegally dumped and subsidized imports do not continue to distort the American market in a road profitability," Nucor's CEO said.
Nucor raw materials segment swings to profitability
Nucor’s raw material segment generated an annual profit of $57 million in 2024. This marked a swing to profit over 2023 when Nucor reported a $14-million loss for the segment. The Charlotte, N.C.-based company did not say in their earnings call on Tuesday what caused this increase besides a 20% increase in the production and […]
Nucor posts lower Q4’24 profit, hints at better times – and more import restrictions – in ’25
Nucor Corp. posted sharply lower fourth quarter earnings on Monday driven in part by lower average selling prices at its steel mills. The Charlotte, N.C.-based steelmaker also warned that first-quarter results might not be much better in commentary released with earnings data. But Nucor said that it expected better times later in 2025. It also hinted at the possibility of ramped up trade restrictions – including more stringent Section 232 tariffs.