Effects from an unplanned outage at AK Steel Corp.s
Middletown, Ohio, blast furnace, coupled with a seasonal
decrease in shipments to the automotive sector, led the company
to report a $31.7-million net loss for the third quarter.
While this marked the
companys ninth consecutive quarterly loss, it narrowed
from a $60.9-million net loss in the same period a year ago and
$40.4-million loss in the second quarter.
The West Chester,
Ohio-based company reported sales of $1.33 billion on shipments
of 1.24 million tons for the three months ended Sept. 30, down
from sales of $1.46 billion on shipments of 1.36 million tons
in the same year-ago period and sales of $1.4 billion on
shipments of 1.32 million tons in the second quarter of
Average sales prices
fell slightly year on year but rose 1 percent from the prior
quarter, the steelmaker said Oct. 22.
"The average selling
price for the third quarter of 2013 improved over the prior
quarter due to a more favorable mix of value-added products,
the benefit of which was largely offset by lower raw material
surcharges and the effect of delayed shipments to customers
resulting from the unplanned outage (at Middletown)," AK
The company also
continued to honor lower-priced orders placed prior to its
unplanned outage in Middletown for carbon spot market
shipments, and "as a result of the limitations on its capacity
for shipments caused by the outage" was unable to "realize the
full benefit" of several price increases that occurred during
the third quarter, it said.
The results also
include pretax losses for the unplanned outage, after partial
insurance recoveries, of $11.8 million for the third quarter
and $18 million for the first nine months of the year.
AK also continued to
experience a decline in electrical steel spot market pricing
during the quarter, particularly in its international sales due
to weak global economic conditions.
The company said its
financial results for the fourth quarter will depend on whether
it can reach an agreement with the insurance underwriters
concerning the outage, but added that it expects improved
results compared with the third quarter.