AK Steel announces Q3 loss, new members to board

AK Steel released its third quarter 2013 results Tuesday, indicating a $31.7 million loss, compared to a net loss of $60.9 million in Q3 2012 and a net loss of $40.4 million in Q2 2013.  Sales for the quarter reached $1.3 billion on shipments of 1.242 million tons, compared to year-ago net sales of $1.46 billion on shipments of 1.364 million tons and $1.40 billion on shipments of 1.324 million tons in Q2 2013. The reduction in shipments for the third quarter of 2013 was primarily due to the effects of the previously disclosed unplanned outage at the company’s Middletown Works blast furnace and to a seasonal reduction in shipments to the automotive market.  As a result of the unplanned outage, the company’s melt production during the quarter was reduced, resulting in a delay of shipments to some carbon spot market customers and an overall reduction in shipments during the quarter.

The company recorded expenses of $4.2 million during the third quarter of 2013 for planned outages, compared to $28.5 million in the third quarter of 2012 and $21.6 million in the second quarter of 2013.  The 2013 third quarter results also include expenses of approximately $11.8 million for costs related to the unplanned blast furnace outage at the company’s Middletown Works.

“At AK Steel, we met our challenges head-on during the third quarter of 2013, and we continue to make solid progress on several fronts,” said James L. Wainscott, Chairman, President and CEO of AK Steel.  “By remaining focused on all of the items within our control, we have positioned the company for an improved fourth quarter.”    

Additionally, AK Steel announced Tuesday two new members to its Board of Directors: Mark G. Essig, former executive vice president of AK Steel and current CEO of FKI Security Group; and Vicente Wright, former President and CEO of California Steel Industries.  Both board memberships will be effective as of November 1, 2013.