Major US-based steelmakers including AK Steel, IPSCO, and US Steel announced first quarter earnings Tuesday, with varied results.
Middletown, Ohio-based AK Steel saw earnings and sales rise in the first quarter of 2007 due to higher shipments, higher selling prices, and lower operating costs at Middletown Works, where workers were locked out for 13 months.
AK Steel, which produces mostly flat rolled steel for the automotive industry, reported first quarter net earnings of $62.7 million, compared to $6.2 million earned during the same period last year, when the lockout of workers at Middletown Works began. Sales for the first quarter totaled a record $1.7 billion, compared to $1.4 billion a year ago.
Meanwhile, steel tube and pipe maker IPSCO Inc., reported that its net income fell 27 percent in the first quarter due to increased costs.
While the company's first quarter revenue grew 14 percent to $1.03 billion, compared to $902.9 million in the previous year, earnings dropped to $109.4 million, from $150.7 million in the year-ago period. IPSCO says that earnings were hurt by an increase in selling, general and administration expenses in the first quarter. IPSCO president and CEO David Sutherland also noted that demand for small-diameter energy tubular products were lower in the first quarter compared to the previous quarter.
US Steel, on the other hand, saw first quarter profit rise 6.6 percent due to the growth in the company's European operations.
The Pittsburgh-based flat rolled steelmaker reported first quarter earnings of $273 million, compared to $256 million during the year-ago period. Revenue increased to $3.75 billion from $3.72 billion in the first quarter of 2006.
"Considering market conditions, we had a good quarter with solid results from flat rolled and tubular and a particularly strong performance by our European segment," said US Steel Chairman and CEO John P. Surma.