AK Steel reported a net loss of $7.2 million for the third quarter of 2014, compared to a net loss of $31.7 million for the third quarter of 2013, and a net loss of $17.1 million for the second quarter of 2014. The third quarter 2014 results reflect one-time costs associated with the acquisition of Severstal Dearborn, which the company completed on September 16, 2014. Excluding acquisition-related expenses totaling $23.6 million, the company reported adjusted net income of $16.4 million.
“AK Steel’s third quarter financial performance exceeded our expectations,” said James L. Wainscott, Chairman, President and CEO of AK Steel. “Our continuing trend of posting adjusted net income provides us with a solid foundation for future growth in earnings and cash flow.”
Net sales for the third quarter of 2014 were $1.59 billion on shipments of 1,462,900 tons, compared to net sales of $1.33 billion on shipments of 1,242,400 tons for the year-ago third quarter and net sales of $1.53 billion on shipments of 1,397,500 tons for the second quarter of 2014. The increase in shipments in the third quarter of 2014 compared to the year-ago period and to the second quarter of 2014 was principally due to shipments from Dearborn Works following the acquisition and higher shipments of carbon steel to the automotive and infrastructure and manufacturing markets.