NEW YORK An unplanned outage at AK Steel
Corp.s Middletown, Ohio blast
furnace and a decline in sales to the electrical steel
and carbon spot markets led the company to post a $40.4-million
net loss for the second quarter of 2013, its eighth consecutive
quarterly net loss.
The West Chester, Ohio-based company reported net sales of $1.4
billion on shipments of 1,323,700 tons for the three months
ended June 30, amounting to an average selling price of $1,061
per ton. This compared to net sales of almost $1.54 billion on
shipments of 1,335,800 tons in the second quarter of 2012 and
net sales of nearly $1.37 million on shipments of 1,289,800
tons for the first quarter of 2013.
The lower shipments for the second quarter of 2013
compared to the year-ago period were primarily due to lower
shipments to the carbon spot market and electrical steel
market, partially offset by increased shipments to the
automotive market, AK Steel said
The unplanned outage of the Middletown Works blast
furnace also contributed to a decline in shipments in the
second quarter of 2013.
The $40.4 million loss compares to a net loss of $724.2 million
for the second quarter of 2012, though that figure included a
non-cash income tax charge of $735.6 million.
The quarterly average selling price of $1,061 per ton
represented an 8-percent decrease from the second quarter of
2012, which the company attributed to lower spot market
prices for carbon steel products, reduced raw material
surcharges and lower selling prices for electrical steel
Meanwhile, AK Steel announced that it restarted the blast
furnace at Middletown Works on July 12. The furnace had been
taken offline following an unexpected mechanical failure on
The companys second quarter results for 2013 included a
charge of $6.2 million for the unplanned outage, with the
company estimating its total uninsured portion of losses in the
second half of 2013 will be between $12.0 million and $17.0
AK Steel also noted that it expects to incur additional
expenses related to the unplanned Middletown blast furnace
outage in the third quarter.
Excluding the blast furnace repair costs, both planned
and unplanned, AK Steels second quarter performance
improved compared to our first quarter, AK chairman,
president and chief executive officer James L. Wainscott said
in a statement.