AK Steel Reports Growth In Net Income For First Quarter
AK Steel today reported strong growth in net income from last year’s first quarter. For the first quarter of 2011, net income was $8.7 million, up from $1.9 million last year. Net sales also improved, increasing to $1,581.1 million on shipments of 1,423,100 tons, compared to net sales of $1,405.7 million on shipments of 1,385,800 tons for the year-ago first quarter.
AK Steel reported its average selling price for 1Q11 as $1,109 per ton, 9% higher than 1Q10 and 4Q10 levels. These higher prices are due to a “richer product mix and higher contract and spot market selling prices.” AK Steel expects shipments to be even higher in the second quarter, between 1,500,000 and 1,550,000 tons at a selling price 7% higher than the first quarter.
Operating profit was $19.5 million, or $14 per ton, for 1Q11 after reporting a loss of $154.6 million, or $114 per ton last quarter. This loss included pre-tax charges of $72.8 million related to the shutdown of Ashland (KY) coke plant and a retiree benefit settlement associated with the company’s Butler (PA) Works. AK Steel expects an operating profit of $65 per ton for the second quarter of 2011.
“AK Steel and our employees again found a way to win by adhering to our core principles in the face of continued economic headwinds,” said James L. Wainscott, Chairman, President and CEO. “Despite slightly lower shipments than we estimated, and continued high raw material costs, we improved operating income by more than $174 million compared to the fourth quarter of 2010.”
(Source: AK Steel)