AK Steel posts net loss for Q4

Middletown, Ohio-based flat rolled and specialty steel producer, AK Steel, this week reported a net loss of $49.3 million for the fourth quarter of 2006, compared to a net loss of $41 million in the fourth quarter of 2005. The loss in revenues was largely due to decreased steel shipments in the fourth quarter, as well as to the high costs of retiree health care benefits. However, the company's product prices increased from the previous year: AK's net sales for the fourth quarter of 2006 totaled $1,582.2 million, with an average selling price of $1,041 per net ton, a 21 percent increase from the same period of the previous year. For the whole year of 2006, AK reported a net income of $12.0 million after taxes, compared to a net loss of $2.3 million for $2005. In addition to retiree health care costs, charges related to the implementation of new labor agreements at the company's plants at Butler, Pennsylvania and Zanesville, Ohio were also contributing factors that negatively affected the company's net income in 2006. Net sales for 2006 totaled $6,069.0 million, compared to $5,647.4 million in 2005, with the company's average selling price in 2006 rising to $984 per net ton, a 12 percent increase over the average selling price in 2005. Looking forward to the first quarter of 2007, AK Steel said it expects shipments to be comparable to fourth quarter levels, with average selling prices increasing four to five percent from the fourth quarter. However, these higher selling prices are expected to be partially offset by higher raw material costs.