West Chester, Ohio-based AK Steel announced Thursday that it expects to incur a net loss of between $0.11 and $0.15 per diluted share in Q1 2012, up from a $0.26 per diluted share loss inQ4 2011. Shipments in Q1 are expected to average 1.3 million tons, or about 7 percent lower than in Q4 2011. However, average per-ton selling prices for Q1 2012 will be about 6 percent higher than in the previous quarter.
Looking forward to Q2 2012, AK said it expects business conditions to improve compared to Q1, led by increased strength in the automotive market. Overall, AK Steel expects its Q2 2012 shipments to be higher than for Q1 2012. AK also expects to have improved operating rates in the 2012 second quarter, along with lower costs for raw materials, as compared to Q1. As a result, AK Steel said that it expects to generate net income for the second quarter of 2012.