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The results exceeded Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 3 cents per share.
The steel producer posted revenue of $1.66 billion in the period, which also beat Wall Street forecasts. Three analysts surveyed by Zacks expected $1.55 billion.
“Our first quarter 2018 operating performance benefited from a favorable pricing environment and solid demand across most end markets, including automotive,” said Roger Newport, AK Steel’s CEO. “Our performance was tempered by the previously disclosed unplanned outage at our Middletown Works in January.”
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Newport said the company remains optimistic about 2018, as its expects automotive and other key end use markets to remain strong.
“Additionally, the collaborative efforts between Precision Partners, AK Tube and our AK Steel technical and research teams are gaining traction at key automotive customers,” he said. “The high level of imports, particularly the ongoing surge of foreign electrical steel, remains a challenge and we will continue to work proactively with the Trump Administration to ensure fair and appropriate trade policies.”
The company said it anticipates that market conditions will strengthen in the second quarter compared to the first quarter. Shipments of carbon and stainless steels, as well as tubular and stamping products, are expected to benefit from continued strength in the automotive market. In addition, the company anticipates increased shipments into both the distributor and converter, and the infrastructure and manufacturing markets.
The company’s shares closed at $4.59 on Monday. One year ago, they were trading at $6.34.
AK Steel is Butler County’s third-largest employer with a total of approximately 2,400 full-time employees at its Middletown Works and corporate headquarters in West Chester Twp.
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