AK Steel provided guidance Thursday for its second quarter 2014 financial results. AK Steel said it expects to report a net loss of $0.19 to $0.23 per diluted share of common stock, which is a substantial improvement over its first quarter results. The company noted that, although it has generally experienced improved conditions in the steel markets it serves, its second quarter results will be negatively impacted by the lingering effects of the extreme winter weather conditions and by the adverse impact of mark-to-market hedging losses, which the company expects will be substantially offset in the second half of 2014 by lower costs for commodities or by gains in its hedging positions.
The company expects shipments of approximately 1,375,000 tons in the second quarter of 2014, an approximate 9 percent increase from 1,262,100 tons in the first quarter of 2014. Though improved, shipment levels for the second quarter reflect the effects of the extreme winter weather conditions and reduced production at the company's Ashland Works blast furnace due to recent operational issues.
The company expects its average selling price for the second quarter of 2014 to remain flat compared to the first quarter of 2014. While spot prices for carbon steel products and many of the company's specialty steel products have increased, the company's overall average selling price has not changed significantly due to a change in product mix. In particular, a higher percentage of the company's total product shipments in the second quarter have been to the carbon spot market.