Steel Mills

Blast Furnace Outage Impacts AK Steel Earnings
Written by Sandy Williams
October 22, 2013
AK Steel has posted losses for the past four quarters and has added third quarter 2013 to that trend. The company reported a net loss of $31.7 million compared to a loss of $40.4 million the previous quarter and $60.9 million in third quarter 2012.
Net sales were $1.33 billion on shipments of 1.24 million tons compared to $1.4 billion in second quarter on shipments of 1.32 million tons and $1.46 billion on shipments of 1.36 million tons in third quarter 2012.
The unexpected blast furnace outage at Middletown Works resulted in delays to some customers and overall reduction of shipments during the quarter. Uninsured loss from the outage is anticipated at approximately $20-$23 million before taxes. Uninsured pre-tax loss and partial insurance recoveries of $11.8 million and $18 million were included in third quarter results. AK Steel expects to recognize the balance of insurance recoveries in the fourth quarter depending on when an agreement is reached with insurance underwriters.
Average selling price of $1,071 per ton in the third quarter was down slightly from third quarter 2012 but up 1.0 percent from second quarter 2013. Third quarter increases in the carbon spot market were offset by lower raw material surcharges and commitments to buyers for lower-price orders placed prior to the Middletown outage. Electrical steel market pricing also dropped in the third quarter due to weak global economic conditions.
Nine month results include sales of $4.11 billion on shipments of 3.85 million tons. A net loss of $82 million was reported for the first nine months of 2013 with EBITDA at $167.8 million, or $44 per ton, compared to $164.4 million, or $41 per ton, in the first three quarters of 2012.
AK Steel provides detailed guidance in December but said it expects an improved fourth quarter.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills

CRU: Blackout knocks out ArcelorMittal mill ‘for months’
Truchas works in Lazaro Cadenas, Michoacan, western Mexico. Repairs may take up to six months.

Nippon Steel posts quarterly loss on cost to buy U.S. Steel
Nippon Steel earnings take hit from buy of U.S. Steel.

Atlas completes Evraz NA deal, renames firm, and hires former USS exec as CEO
Atlas Holdings has completed its acquisition of Evraz North America (Evraz NA) and its subsidiaries.

ArcelorMittal: As tariffs slow global growth, Calvert could be a bright spot
ArcelorMittal expects less demand growth across most of the markets it operates in, including the US, because of President Donald Trump’s tariffs. But the Luxembourg-based steelmaker also thinks it stands to benefit from an increasingly regionalized world thanks to investments like the new EAF at its mill in Calvert, Ala.

Ternium posts solid Q2, expects further shipment growth
Latin American steel producer Ternium delivered a solid performance in the second quarter of 2025. Performance was driven primarily by higher realized steel prices in Mexico, even as shipment volumes declined slightly across its regional portfolio.