AK Steel (provided guidance for its fourth quarter 2015 financial results this week, indicating an expected net loss of $0.33 to $0.38 per diluted share, including approximately $0.42 per diluted share for charges related to the previously announced temporary idling of the blast furnace and related steelmaking operations at its Ashland, Kentucky Works facility.
The company said that it expects lower shipments in the fourth quarter compared to the third quarter principally due to the ongoing effects in the carbon steel spot market from what the company believes are unfairly traded steel imports.
For the fourth quarter of 2015, AK Steel expects shipments of approximately 1.6 million tons, or about 14 percent lower than the third quarter of 2015. The lower shipments reflect AK Steel's decision to reduce sales to the carbon steel spot market due to the adverse impact on pricing from high levels of imported steel.
AK Steel expects an average selling price of approximately $930 per ton for the fourth quarter of 2015, about 2 percent higher than the third quarter of 2015. The higher selling price is primarily due to a greater mix of higher value products sold into the automotive market. However, despite the slight rise compared to the prior quarter, the company's average selling price continues to be negatively impacted by the excess supply of low-priced foreign steel imported to the US market.
The company's financial results for the fourth quarter of 2015 are expected to include charges of approximately $32.0 million, or $0.18 per diluted share, for supplemental unemployment and other employee benefit costs, as well as other costs incurred to idle the Ashland Works steelmaking operations. In addition, beginning in the first quarter of 2016, the company estimates it will incur on-going costs of approximately $2.0 to $3.0 million per month related to the idled Ashland Works operations. The company expects that benefits from focused cost reduction measures, higher operating rates at its blast furnaces at the Middletown, Ohio Works and Dearborn, Michigan Works and a better product mix resulting from lower shipments to the carbon spot market will offset the on-going fixed costs associated with the idled Ashland Works blast furnace and steelmaking operations.
For the fourth quarter of 2015, AK Steel expects shipments of approximately 1.6 million tons, or about 14 percent lower than the third quarter of 2015. The lower shipments reflect AK Steel's decision to reduce sales to the carbon steel spot market due to the adverse impact on pricing from high levels of imported steel.
AK Steel expects an average selling price of approximately $930 per ton for the fourth quarter of 2015, about 2 percent higher than the third quarter of 2015. The higher selling price is primarily due to a greater mix of higher value products sold into the automotive market. However, despite the slight rise compared to the prior quarter, the company's average selling price continues to be negatively impacted by the excess supply of low-priced foreign steel imported to the US market.
The company's financial results for the fourth quarter of 2015 are expected to include charges of approximately $32.0 million, or $0.18 per diluted share, for supplemental unemployment and other employee benefit costs, as well as other costs incurred to idle the Ashland Works steelmaking operations. In addition, beginning in the first quarter of 2016, the company estimates it will incur on-going costs of approximately $2.0 to $3.0 million per month related to the idled Ashland Works operations. The company expects that benefits from focused cost reduction measures, higher operating rates at its blast furnaces at the Middletown, Ohio Works and Dearborn, Michigan Works and a better product mix resulting from lower shipments to the carbon spot market will offset the on-going fixed costs associated with the idled Ashland Works blast furnace and steelmaking operations.