AK Steel expects third quarter operating losses
Ohio-based AK Steel announced today that it expects to report operating losses for the third quarter 2005; citing record-high gas prices and higher than expected scrap prices. The company had expected to generate an operating profit of approximately $10 per ton on estimated shipments of 1625000 tons for this years third quarter, the company now expects a $20 per ton net loss on its now-estimated shipments of 1675000 tons. AK president and CEO, James L. Wainscott said, While our shipment levels remain strong and spot market selling prices continue to rebound, we have experienced substantial cost increases for our steelmaking inputs, especially natural gas and scrap, due to the devastating effects of Hurricane Katrina. We are fortunate that we succeeded in securing all necessary inputs to maintain our current level of operations, but unfortunately, it is going to be more costly than we could have envisioned at the start of the third quarter. AK Steel said the expected operating loss excludes costs associated with the recently announced tentative labor agreement covering USW members at Ashland Works.