AK Steel announces financial results of Q3

AK Steel announces financial results of Q3

Ohio-based steel producer AK Steel has recently announced financial results of the third quarter ending September 30, 2004 and financial results regarding the first nine months of the current fiscal year. Accordingly, in the third quarter, company reported a net income of $83.1 million against a net loss of $277.5 million recorded in the third quarter of 2003. Operating profit in the subject quarter was recorded as $94.5 million compared to an operating loss of $123.8 million recorded in the corresponding period of previous year. Net sales in the third quarter of 2004 reached a record level of $1.33 billion on shipments of 1'541'800 tons against net sales of $1.02 billion on shipments of 1'502'700 tons recorded in the same quarter of 2003. These results are attributed to the strong market, favorable sales contracts and more competitive labor agreements. In the first nine months of the current fiscal year, net sales increased to $3.78 billion on shipments of 4'621'200 tons against net sales of $2.98 billion on shipments 4'267'100 tons recorded in the same period of 2003. Operating profit in the subject period increased to $152.4 million against operating loss of $282.1 million recorded in the first nine months of 2003. Net income in the same period increased to $341.2 million against net loss of $396.5 million recorded in the first nine months of 2003. For the fourth quarter, AK Steel expects an increase in its operating income despite rising raw material prices. The company announced that higher costs will be offset by increased shipments and higher sales prices.