AK Steel announced its first quarter results for 2003

AK Steel announced its first quarter results for 2003

US leading flat rolled producer AK Steel last Friday announced a net loss of $40.8 million with a 60% increase for the first quarter compared to same period last year which is equal to $25.6 million, basically due to rising costs and weakening demand. Company reported that sales revenue grew up to $1 billion from $967.7 million with a 3% increase as average sales price for flat rolled products incresed 6% compared to first quarter of 2002. However, shipments were lowered to its main markets; such as appliance, construction and manufacturing markets because of weak demand, as well as to the spot market as a result of low prices which are below the expectations. In the first quarter AK Steel shipped 1.37 million tons with a 5% decrease compared to first quarter a year ago and 4% below the fourth quarter of 2002 figure. AK Steel attributes its disappointing first quarter results to low production levels, considerably high scrap, natural gas and pension and healthcare benefits as well as the unplanned maintenance process of its blast furnace in Middletown, Ohio. Company also expressed that added to the aforecited reasons, the overcapacity problem restrains the domestic US steel industry from recovery.