Steel Mills

AK Steel Guides to Higher Flat Rolled Steel Demand

Written by Sandy Williams

AK Steel announced its fourth quarter earnings guidance and expects to realize net income of $0.01 to $0.06 per diluted share.

Steel shipments are expected to increase by 13 percent to 1,400,000 tons in the fourth quarter compared to 1,242,400 tons in the third quarter. The company says demand has increased, especially in carbon sales to the spot market. The average selling price in Q4 is expected to decrease 4 percent to $1,071 per ton due to a lower percentage of value-added shipments in the spot market. The higher shipping volume is expected to more than offset the lower average selling price.

Productions costs will be lower in the fourth quarter due to lower cost for iron ore pellets. Costs related to planned maintenance outages will be $2 million compared to 4.2 million incurred in third quarter.

The unplanned blast furnace outage at Middletown Works will be partially covered by property damage and business interruption insurance but will result in an expense of approximately $5 million in the fourth quarter.

Tax expenses will be lower in the fourth compared to the previous quarter. AK Steel expects a non-cash income tax expense of approximately $2 million or $0.01 per diluted share.

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