AK Steel joins other steelmakers in reporting reduced shipment volumes for fourth quarter. In its guidance report, the company says it expects shipments of approximately 1.6 million tons, down 14 percent from Q3. The decrease is a result of reduced sales in the carbon steel spot market due to the adverse impact of pricing from high levels of imported steel.
Average selling price per ton is expected to increase two percent from third quarter to approximately $930 per ton. AK Steel attributes the slight increase to a great mix of higher value products sold to the automotive market.
Fourth quarter results will be negatively impacted by charges related to the temporary idling of its Ashland, Kentucky Works and an impairment charge on its discontinued insurance operation, AFSG Holdings, Inc. The idling of Ashland will incur ongoing costs of $2-3 million per month beginning in Q1 2016 but will be offset by cost savings and higher operating rates at the Middletown, Ohio Works and Dearborn facilities and a better product mix.
AK Steel also anticipates higher income tax expense of $34 million, compared to $17.2 million in Q3, due to an increase in estimated LIFO income.
AK Steel said that it expects to report a net loss of $0.33 to $0.38 per diluted share of common stock for the fourth quarter of 2015, equivalent to approximately $55 million.
Sandy WilliamsRead more from Sandy Williams
Latest in Steel Mills
AISI: Raw steel output edges down
Domestic production of raw steel declined slightly last week, moving down for the first time in six weeks, according to the most recent data from the American Iron and Steel Institute (AISI).
Goncalves blames USS for ITC tin products decision, USS fires back
Cleveland-Cliffs CEO Lourenco Goncalves said he blames U.S. Steel’s lack of participation in the tin mill products trade case for an unfavorable US International Trade Commission (ITC) decision.
Nucor slashes plate prices by $90/st
Nucor Corp. announced that its plate mill group would cut prices for as-rolled, discrete, and normalized plate with the opening of its April order book.
USW remains skeptical of USS acquisition despite Nippon’s promises
The United Steelworkers union expressed a lack of trust in assurances from Japan’s Nippon Steel Corp. (NSC) regarding its proposed buy of U.S. Steel.
Biden admin scrutinizing Nippon Steel’s Chinese ops in USS deal: Report
Nippon Steel Corp.’s (NSC) operations in China are a potential security concern of the Biden administration, according to a Bloomberg report citing anonymous sources close to the matter.