NEW YORK AK Steel Corp.
expects to record a net loss of between 9 and 13 cents per
share for the first three months of 2013 as the traditional
first-quarter improvement in the spot market has yet to
If the companys earnings
come in as expected, the first quarter will mark AK
Steels seventh consecutive quarterly loss. However, the
West Chester, Ohio-based steelmakers forecast will mark
an improvement from the $1.89-per-share loss recorded in the
fourth quarter, mainly due to lower costs for raw materials and
improved average selling prices in the first quarter, the
company said in guidance released March 22.
AK Steel also said it expects to
record a non-cash tax benefit of some $4 million to $5 million
for the first quarter due to a change in a tax valuation
allowance related to the companys deferred tax
The company is forecasting steel
shipments of about 1.275 million to 1.3 million tons in the
first quarter, down from about 1.406 million in the preceding
three months. While overall shipments will be down, the company
added that it expects to see increased shipments sequentially
due to buyers in the automotive market.
The companys average
selling price in the first quarter will be about $1,060 per
ton, up 4.8 percent from an average $1,011 per ton in the
"The expected increase in
average selling price is primarily due to a higher-priced
product mix compared to the previous quarter," the company
AK Steel said in a recent
conference call that earnings for the first quarter and 2013 as
a whole should mark an improvement from previous quarters (
amm.com, Jan. 29).