Accounting Charges, Mill Idling Costs Help Sink AK Steel's 2015 Earnings
01/26/2016 - Although sales and shipments rose in 2015, U.S.-based AK Steel Corp. lost US$510.7 million on the year after writing off investments in its iron ore and incurring costs to idle its Ashland, Ky., steel works, the company has announced.
According to its year-end earnings statement, those factors, along with others, contributed to the loss. The company recorded a US$96.9 million loss in 2014.
During the year, shipments rose 15.5 percent to approximately 7.1 million tons, the company said. At the same time, sales increased 2.8 percent to US$6.69 billion, owing mostly to its September 2014 acquisition of its Dearborn Works and continued strength in the automotive market.
But the sales increase came on volume, and not on price, the company said. The average selling price was down 11 percent to US$942 per ton from 2014.
“The decrease in average selling price is primarily attributable to significantly lower carbon steel selling prices in 2015, principally due to a large increase in low-priced steel imports and lower raw material prices,” it said in a statement.
During the year, shipments rose 15.5 percent to approximately 7.1 million tons, the company said. At the same time, sales increased 2.8 percent to US$6.69 billion, owing mostly to its September 2014 acquisition of its Dearborn Works and continued strength in the automotive market.
But the sales increase came on volume, and not on price, the company said. The average selling price was down 11 percent to US$942 per ton from 2014.
“The decrease in average selling price is primarily attributable to significantly lower carbon steel selling prices in 2015, principally due to a large increase in low-priced steel imports and lower raw material prices,” it said in a statement.
