AK Steel Reports Financial Results for First Quarter of 2012
04/26/2012 - AK Steel reported a net loss of $11.8 million on net sales of $1,508.7 million for the first quarter of 2012.
AK Steel reported a net loss of $11.8 million on net sales of $1,508.7 million for the first quarter of 2012.
The $11.8 million net loss ($0.11 per diluted share of common stock) compares to net income of $8.7 million ($0.08 per diluted share) for the year-ago first quarter (1Q-2011) and a net loss of $193.9 million ($1.76 per share) for the previous quarter (4Q-2011). The fourth quarter 2011 loss included a non-cash pre-tax pension corridor charge of $268.1 million ($1.50 per diluted share).
Net sales of $1,508.7 million compare to sales of $1,581.1 million for the year-ago first quarter, while shipments of 1,325,900 tons compare to shipments of 1,423,100 tons for the year-ago first quarter. The company said its average selling price was $1,138 per ton, a 6% increase from the previous quarter (4Q-2011), and about 3% higher than the first quarter of 2011. The higher average selling price over the year-ago first quarter was primarily due to a richer product mix, increased contract sales and higher prices for certain products.
The company reported an operating profit of $4.1 million ($3 per ton) compared to an operating profit of $19.5 million ($14 per ton) for the year-ago first quarter and an operating loss of $300.7 million ($213 per ton) for the previous quarter (4Q-2011). The fourth quarter loss included the $268.1 million ($190 per ton) pre-tax pension corridor charge. The 2012 first quarter results include a LIFO credit of $12.4 million, compared to a LIFO credit of $44.1 million in the previous quarter (4Q-2011).
"We continued to experience a slow, but steady, improvement in market conditions during the first quarter, which helped AK Steel achieve an operating profit," said James L. Wainscott, Chairman, President and CEO of AK Steel. "Additionally, our employees once again turned in outstanding performances in the hallmarks of our company – safety, quality and productivity."
The company ended the first quarter of 2012 with $42.3 million of cash and cash equivalents and $840.6 million of availability under the company's revolving credit facility, for total liquidity of approximately $883 million.
Second Quarter 2012 Outlook - AK Steel said that it expects to report net income in the second quarter of 2012. More detailed second quarter guidance is to be provided later in the quarter.
AK Steel produces flat-rolled carbon, stainless and electrical steels, primarily for automotive, infrastructure and manufacturing, construction and electrical power generation and distribution markets. The company employs about 6200 men and women in Middletown, Mansfield, Coshocton and Zanesville, Ohio; Butler, Pa.; Ashland, Ky.; Rockport, Ind.; and its corporate headquarters in West Chester, Ohio.
AK Tube LLC, a wholly-owned subsidiary of AK Steel, employs about 300 men and women in plants in Walbridge, Ohio, and Columbus, Ind. AK Tube produces carbon and stainless electric resistance welded (ERW) tubular steel products for truck, automotive and other markets.
AK Coal Resources, Inc., another wholly-owned subsidiary of AK Steel, owns or leases metallurgical coal reserves in Somerset County, Pa. AK Steel also owns 49.9% of Magnetation LLC, a joint venture headquartered in Grand Rapids, Minn., that produces iron ore concentrate from previously mined ore reserves.
