Steel Mills
Dearborn Acquisition Boosts AK Steel Earnings
Written by Sandy Williams
November 4, 2014
AK Steel reported a net loss of $7.2 million for the third quarter of 2013 due to one-time costs associated with the acquisition of Severstal Dearborn. Excluding the acquisition related costs, AK Steel’s adjusted net income was $16.4 million.
Net sales were $1.59 billion on shipments of 1,462,900 tons. Shipments increased from 1,242,400 tons in Q3 2013 and 1,397,500 tons in Q2 2014 due to the addition of Dearborn and higher shipments of steel to the automotive and manufacturing markets. Steel shipments increased across all product categories on a year-over-year basis.
Average selling price decreased slightly from second quarter to $1,089 per ton. Costs of products sold were higher due to the Dearborn acquisition and an unplanned maintenance outage at the Ashland Works blast furnace. The company incurred costs of $23.2 million for the Ashland outage and $1.1 million for planned outages in third quarter.
“AK Steel’s third quarter financial performance exceeded our expectations,” said James L. Wainscott, Chairman, President and CEO of AK Steel. “Our continuing trend of posting adjusted net income provides us with a solid foundation for future growth in earnings and cash flow.”
Results for third quarter and the nine months ending September 30, 2014 include net sales of $90 million and operating profit of $2.1 million from the Dearborn acquisition.
The fourth quarter outlook will be discussed in the company earnings call but results are expected to be impacted by a planned outage at Ashland Works. The maintenance outage, which began in late October, includes a reline of the blast furnace hearth and will last approximately 28 days.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Cleveland-Cliffs quietly removes name from Steelton mill
The Cleveland-Cliffs name has been removed from its idled Steelton rail mill. SMU asked Cliffs about the move and if it might signal that it is selling the mill...
Nucor sees sequentially lower Q3 profits across all three business segments
Nucor's third-quarter earnings will be down quarter-over-quarter, but still higher than a year earlier.
Hyundai still on for Louisiana steel mill despite US raid at Georgia battery plant
Hyundai has reaffirmed its commitment to build a steel plant in Louisiana following a US government immigration raid at its battery facility in Georgia.
Hybar lowers output forecast, owning up to EAF startup delay
Hybar LLC’s rebar mill in Osceola, Ark., is now melting scrap and will soon be fulfilling orders, according to CEO David Stickler, despite a six-to-eight-week delay caused by commissioning the world’s first Aura electrical system.
Steel Dynamics guides to more metal, more money in Q3
Steel Dynamics Inc. is bullish heading into the close of the third quarter, with all three of its operating segments tracking higher.