NEW YORK AK
Steel Corp. expects to post a bigger second-quarter net loss
due to a planned blast furnace outage at one of its facilities,
lower selling prices for carbon flat-rolled products and
several tax expenses. However, the company expects pricing to
improve in coming months.
anticipates a net loss of 33 to 38 cents per diluted share for
the three months ending June 30, according to a guidance
released June 17, compared with a first-quarter net loss of 7
cents per share, or $9.9 million (
amm.com, April 23). If results come in as
expected, it would be the companys eighth consecutive
AK Steel said that its
second-quarter results will include charges related to a
planned seven-day maintenance outage at its blast furnace in
Middletown, Ohio, the first major maintenance outage for that
furnace since a reline in 2009.
including those for the Middletown blast furnace, are expected
to reach $21 million in the second quarter vs. $1 million in
the first three months of the year. The company said it does
not have any other planned blast furnace maintenance outages
for the remainder of 2013.
AK Steel forecast that
second-quarter shipments would total between 1.34 million and
1.36 million tons, up 4 to 5 percent from 1.29 million tons in
the first quarter due to increased shipments to the automotive
and carbon spot markets.
The West Chester,
Ohio-based steelmaker noted that its average selling prices
have fallen 1 percent to $1,055 per ton, but it expects prices
to improve in the near term. "The expected decrease in average
selling price is primarily due to lower spot market prices for
carbon steel products compared to the previous quarter," it
said. "Despite this quarter-over-quarter reduction, pricing has
been more favorable in recent weeks. ... As a result, the
companys spot market selling prices have improved
recently and the company expects to continue to benefit in
future months from these announced price increases."
second-quarter results are expected to include a tax expense of
some $14 million, as well as a $15-million income tax expense
related to the companys last-in first-out reserve.