AK Steel reported Tuesday a net income of $6.7 million, or $0.04 per diluted share of common stock, for the third quarter of 2015, compared to a net loss of $7.2 million, or $0.05 per diluted share, for the third quarter of 2014 and a net loss of $64.0 million, or $0.36 per diluted share, for the second quarter of 2015. The company reported adjusted EBITDA (as defined in the "Non-GAAP Financial Measures" section below) of $120.0 million, or $64 per ton, for the third quarter of 2015 compared to adjusted EBITDA of $100.5 million, or $69 per ton, for the year-ago third quarter. Adjusted EBITDA for the third quarter of 2015 increased as compared to adjusted EBITDA of $47.6 million, or $26 per ton, for the second quarter of 2015.
"I am pleased that AK Steel delivered solid third quarter 2015 financial results. Despite facing the continued onslaught of what we believe are unfairly traded carbon steel imports, we experienced our best quarterly financial performance in nearly six years," said James L. Wainscott, Chairman, President and CEO. "The company achieved more than double its adjusted EBITDA quarter-over-quarter and we ended the third quarter with solid liquidity of $821 million."
Mr. Wainscott continued, "Our results benefited from a combination of record quarterly automotive shipments, stable operations, and lower raw material costs. We also achieved cost savings from the continued integration of Dearborn Works and from all of our other cost reduction initiatives throughout the company. All in all, it was a great team effort from all of our employees that allowed us to generate a quarterly profit on behalf of our shareholders."
Net sales for the third quarter of 2015 were $1.71 billion on shipments of 1,871,200 tons, compared to net sales of $1.59 billion on shipments of 1,462,900 tons for the year-ago third quarter and net sales of $1.69 billion on shipments of 1,811,700 tons for the second quarter of 2015. The company's shipments in the third quarter of 2015 rose from the second quarter of 2015, primarily as a result of increased shipments to the automotive market. The increase in shipments and sales for the third quarter of 2015 compared to the year-ago period was due principally to the addition of shipments from the acquisition of Dearborn Works in September 2014 and continued strong shipments of carbon and stainless steel products to the automotive market.
Consistent with its current practice, the company said that it intends to provide detailed guidance for its fourth quarter 2015 financial results in December. The company anticipates lower carbon steel pricing in the fourth quarter compared to the third quarter, due principally to the high level of low-priced foreign steel that has continued to be imported into the United States during the preliminary stages of the carbon steel trade cases, in addition to recent declines in carbon scrap prices. As a result of these low-priced imports and their impact on the current market environment, the company also expects lower carbon steel spot market shipments in the fourth quarter.