AK Steel reports another net loss in Q2

AK Steel reported Tuesday a net loss of $64.0 million for the second quarter of 2015, or $0.36 per diluted share of common stock, for the second quarter of 2015, compared to a net loss of $17.1 million, or $0.13 per diluted share, for the second quarter of 2014 and a net loss of $306.3 million, or $1.72 per diluted share, for the first quarter of 2015.

“Continued strength in the automotive market contributed to an overall increase in automotive market and total shipments quarter-over-quarter for the company,” said James L. Wainscott, Chairman, President and CEO of AK Steel. “Unfortunately, however, continued high levels of what we believe are unfairly traded imports significantly impacted selling prices in the carbon steel spot market, which negatively impacted the company’s results.”

Net sales for the second quarter of 2015 were $1.69 billion on shipments of 1,811,700 tons, compared to net sales of $1.53 billion on shipments of 1,397,500 tons for the year-ago second quarter and net sales of $1.75 billion on shipments of 1,750,500 tons for the first quarter of 2015. The company’s shipments in the second quarter of 2015 were higher than the first quarter of 2015, primarily as a result of increased shipments to the carbon spot market and continued strength in the automotive market. The increase in shipments and sales for the second quarter of 2015 compared to the year-ago period was due principally to the addition of shipments from Dearborn Works (acquired in September of 2014) and continued strong shipments of carbon and stainless products to the automotive market.

For a variety of reasons, the company expects to generate improved results for the third quarter and for the second-half of 2015 as compared to the second quarter and first-half of 2015. Chief among these reasons are anticipated higher shipments, improving carbon steel spot market prices, increased production levels resulting in lower per ton operating costs, and the continuing benefit of lower raw materials costs, in particular, iron ore. The company expects shipments to customers in its largest market, automotive, to remain strong.

In addition, the company expects the level of what the company believes are unfairly traded imports of carbon steel products will continue to decline in the second-half of the year, principally because of the pending and anticipated future steel industry trade cases, resulting in increased domestic steel shipments and a continuing improving trend in selling prices.