DOW JONES NEWSWIRES
AK Steel Holding Corp. (AKS) swung to a first-quarter profit on
surging shipments compared with woeful year-earlier levels.
The steelmaker also said it expects current-quarter shipments to
rise 5% from the first quarter and average sale prices to increase
5% to 6%.
Shares fell 1.6% in recent premarket trading to $20.50 as the
latest results met expectations. The stock closed has more than
doubled the past year.
Steelmakers have recently been challenged by increasing raw
material prices. The company said Tuesday that substantial
uncertainty remains as to global iron ore pricing for 2010, which
may have a negative impact on second-quarter results.
During the recession, the sector has been slammed by the
slowdown in sales of everything from appliances to autos to
construction materials. But Chairman and Chief Executive James L.
Wainscott said Tuesday that AK Steel "is firmly on the road to
recovery as the order book for carbon products reflects robust
demand."
The company reported a profit of $1.9 million, or 2 cents a
share, compared with a year-earlier loss of $73.4 million, or 67
cents a share. The latest quarter included a 23-cent charge related
to the newly enacted federal healthcare overhaul.
Revenue surged 52% to $1.41 billion as shipments soared 78%.
Average selling price dropped 14%.
Analysts polled by Thomson Reuters had most recently forecast
earnings of 25 cents on $1.41 billion in revenue.
-By Jodi Xu, Dow Jones Newswires; 212-416-3037;
jodi.xu@dowjones.com