While more steel was sold and moved than a year ago — due to the acquisition of a new steel plant in Michigan since that time — less steel was sold than the prior quarter. Over 2.01 million tons were shipped from October to December.
AK Steel officials are citing unfairly and low-priced imports for hurting sales in certain segments.
“Shipments and selling prices in the carbon steel spot market were significantly impacted during the first quarter by the tidal wave of what we believe were unfairly traded foreign steel imports,” said James Wainscott, chairman, president and chief executive officer of AK Steel, in a written statement. “Despite the negative effects of imports on AK Steel’s results, the company experienced strong sales in automotive markets…”
The net loss for the most recent quarter was $306.3 million on sales of $1.75 billion, compared to a net loss a year ago of $86.1 million on sales of $1.38 billion.
Results also included a non-cash transaction that lowered financial results on the accounting books. AK Steel owns an interest in the joint venture Magnetation that produces iron ore pellets. But due to significant decline in global iron ore pellet pricing and the negative effect of that on Magnetation’s operations and cash flows, AK Steel recorded an impairment charge of $256.3 million for the period ending March 31.
The price per share of common stock for AK Steel closed Tuesday at $5.35, up from a closing price Monday of $4.89.
West Chester Twp.-based AK Steel employs approximately 2,400 full-time workers in Butler County between headquarter operations and the Middletown Works steel plant. AK Steel facilities in Ohio, Kentucky, Indiana, Michigan, Pennsylvania and Minnesota employ approximately 8,000 in total and produce flat-rolled carbon, electrical and stainless steels used by the automotive, appliance, construction and manufacturing markets.
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