AK Steel reported $78.2 million loss for Q2
Last Friday US leading flat producer AK Steel Holding Corp. based in Middletown, Ohio, reported a net loss of $78.2 million for the quarter ended in June 30 where $16.2 million profit was recorded in the same period in 2002. It is also declared that revenue gained from the sales effected in the second quarter decreased to $1.02 billion from $1.14 billion in the same period a year ago with 1.4 million tons and 1.5 million tons shipped respectively. According to these results, net loss for the second half of 2003 is recorded as $119 million which incredibly grew up by 1166% from $9.4 million loss recorded back in second half of 2002. Again in the same period, sales revenue totalled $2 billion as 2.77 million tons were shipped during the second half decreasing by 4.2% and 6.1% from $2.1 billion and 2.9 million tons respectively when compared to previous year. A top official from AK Steel expressed that these financial results are in close relation with poor market conditions forcing the company to reduce its average flat steel price by 4% in the second quarter, high input costs and company's strategy to lower exports to spot markets as prices are low which resulted in 7% decrease in tonnage shipped throughout the quarter. Added to that, the expenses made for the maintenance process of the blast furnace in the Middletown mill during the second quarter, shutdown of the sinter ore recycling plant in the same mill and restart production in a coke battery had its effect on these financial results. According to the official's statement it is understood that cost cutting and productivity raising will take the priority in setting company's future plans.