AK Steel reported a net loss of $107.9 million for the fourth quarter of 2017, compared to a net loss of $62.4 million for the fourth quarter of 2016.
Net sales for the fourth quarter of 2017 increased 5 percent to $1.50 billion, from net sales of $1.42 billion for the year-ago fourth quarter, which the company said was primarily driven by incremental sales from the acquisition of Precision Partners in August 2017.
Flat-rolled steel shipments declined to 1,337,100 tons for the fourth quarter of 2017 from 1,385,500 tons in the prior-year fourth quarter. AK Steel attributed the decline in flat-rolled shipments to lower automotive demand as automakers managed their inventories. The average selling price per flat-rolled steel ton for the fourth quarter of 2017 increased 4 percent from the fourth quarter of 2016 to $1,024 per ton, primarily as a result of higher spot market pricing and higher automotive selling prices.
The company recorded full-year 2017 net income of $10.0 million compared to a net loss of $7.8 million for 2016. Net sales for 2017 were $6.08 billion, an increase of 3 percent from 2016 net sales of $5.88 billion.
Flat-rolled steel shipments in 2017 declined 6 percent to 5,596,200 tons from 5,936,400 tons in 2016. The company attributed the decline in flat-rolled shipments to a decline in shipments to the automotive market, which were 10 percent lower in 2017 than 2016. The average selling price per flat-rolled steel ton for 2017 increased 7 percent from 2016 to $1,022 per ton driven by higher contract and spot prices.
“We were pleased with our full-year results. Our fourth quarter was consistent with our expectation and reflected the impact of the major planned maintenance outages, which we completed on time and on budget,” said Roger K. Newport, Chief Executive Officer of AK Steel. “We are enthusiastic about 2018 as we anticipate solid demand in many of our key end-use markets, and we continue to unlock the opportunities being developed through our recent acquisition of Precision Partners.”