US integrated steel producer AK Steel on Tuesday reported a net income of $6.2 million for the third quarter of 2009, which represents a $53.4 million improvement over the net loss of $47.2 million incurred in the second quarter of the year. In Q3 2008, the company earned $188.3 million.
Net sales for the West Chester, Ohio-based flat rolled, tubing and specialty steel producer in the third quarter totaled $1.041 billion on shipments of 1,047,800 net tons, compared to sales of $2.158 billion in the year-ago quarter.
James L. Wainscott, chairman, president and CEO of AK Steel, commented, "While the results may pale in comparison to the year-ago records, in many respects the performance is even more remarkable, given that third-quarter 2009 revenues fell by more than half from the year-ago period."
Looking forward, AK Steel said it expects shipments for the fourth quarter of 2009 to be approximately 1,300,000 nt, reflecting an increase of nearly 24 percent over third quarter shipments, primarily in carbon steel products. However, AK Steel also expects its fourth quarter 2009 average per-ton selling price to decline approximately two percent compared to the third quarter of 2009 level, due to an anticipated higher percentage of carbon steel shipments relative to stainless and electrical shipments in the fourth quarter as compared to the third quarter.
AK Steel expects maintenance costs to be approximately $10 million higher compared to the third quarter of 2009, though it expects lower operating and raw material costs in the fourth quarter compared to the third quarter, resulting in an operating profit ranging from $30 to $35/nt in Q4.