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AK Steel Provides Second Quarter 2015 Earnings Guidance
06/25/2015 - AK Steel has provided guidance for its second quarter 2015 financial results.
AK Steel said that it expects to report a net loss of $0.37 to $0.42 per diluted share of common stock for the second quarter of 2015. AK Steel said that the company's expected second quarter results continued to be negatively impacted by lower carbon steel prices due to the continued high level of what the company believes are unfairly traded imports.
For the second quarter of 2015, AK Steel expects shipments of approximately 1.8 million tons, an increase of approximately 3% compared to the first quarter of 2015. The increase in shipments quarter over quarter is primarily related to increased shipments to the carbon steel spot market and continued strength in the automotive market.
AK Steel expects an average selling price of approximately $929 per ton for the second quarter of 2015, or about 7% lower than the first quarter of 2015. The decrease in average selling price is primarily a result of continued high levels of imports that have negatively affected selling prices in the carbon spot market. Also impacting the average selling price is a less rich product mix as a result of increased shipments to the carbon spot market in the second quarter as compared to the first quarter. Lower costs for raw materials (principally carbon scrap and iron ore pellets) and energy partially offset the effects of lower selling prices.
The company said that it expects to record income tax expense of approximately $0.08 per diluted share for the second quarter of 2015 using the discrete method of accounting for income taxes. The company's income tax provision is primarily related to changes in the company's LIFO reserve, which results in a tax valuation allowance adjustment related to the company's deferred tax assets.
AK Steel is a world leader in the production of flat-rolled carbon, stainless and electrical steel products, primarily for automotive, infrastructure and manufacturing, construction and electrical power generation and distribution markets. Headquartered in West Chester, Ohio (Greater Cincinnati), the company employs approximately 8,000 men and women at eight steel plants, two coke plants and two tube manufacturing plants across six states: Indiana, Kentucky, Michigan, Ohio, Pennsylvania and West Virginia. Additional information about AK Steel is available at www.aksteel.com.
For the second quarter of 2015, AK Steel expects shipments of approximately 1.8 million tons, an increase of approximately 3% compared to the first quarter of 2015. The increase in shipments quarter over quarter is primarily related to increased shipments to the carbon steel spot market and continued strength in the automotive market.
AK Steel expects an average selling price of approximately $929 per ton for the second quarter of 2015, or about 7% lower than the first quarter of 2015. The decrease in average selling price is primarily a result of continued high levels of imports that have negatively affected selling prices in the carbon spot market. Also impacting the average selling price is a less rich product mix as a result of increased shipments to the carbon spot market in the second quarter as compared to the first quarter. Lower costs for raw materials (principally carbon scrap and iron ore pellets) and energy partially offset the effects of lower selling prices.
The company said that it expects to record income tax expense of approximately $0.08 per diluted share for the second quarter of 2015 using the discrete method of accounting for income taxes. The company's income tax provision is primarily related to changes in the company's LIFO reserve, which results in a tax valuation allowance adjustment related to the company's deferred tax assets.
AK Steel is a world leader in the production of flat-rolled carbon, stainless and electrical steel products, primarily for automotive, infrastructure and manufacturing, construction and electrical power generation and distribution markets. Headquartered in West Chester, Ohio (Greater Cincinnati), the company employs approximately 8,000 men and women at eight steel plants, two coke plants and two tube manufacturing plants across six states: Indiana, Kentucky, Michigan, Ohio, Pennsylvania and West Virginia. Additional information about AK Steel is available at www.aksteel.com.
