WEST CHESTER, Ohio,
Sept. 17, 2015 /PRNewswire/ -- AK
Steel (NYSE: AKS) today provided guidance for its third quarter
2015 financial results. AK Steel said that it expects to
report a net loss of $0.02 to
$0.07 per diluted share of common
stock for the third quarter of 2015, reflecting an improvement from
the net loss of $0.36 per diluted
share in the second quarter of 2015. AK Steel said it expects
the positive financial effects of higher shipments, lower raw
material costs, cost reduction efforts and higher operating rates
will partially offset lingering low carbon steel spot market
prices.
For the third quarter of 2015, AK Steel expects shipments of
approximately 1,860,000 tons, an increase of approximately 3%
compared to the second quarter of 2015. The increase in
shipments quarter over quarter is primarily related to increased
shipments to the automotive market.
AK Steel expects an average selling price of approximately
$910 per ton for the third quarter of
2015, about 2% lower than the second quarter of 2015. The
decrease in average selling price is primarily a result of lower
carbon steel spot market pricing, which the company believes is
principally driven by high levels of unfairly traded foreign steel
imports. Lower costs for raw materials (principally iron ore
pellets and carbon scrap) and energy, along with the results of
continued efforts across the company to reduce costs, partially
offset the effects of lower steel selling prices.
The company said that it expects to record income tax expense of
approximately $0.12 per diluted share
for the third quarter of 2015 as a result of year-to-date effects
of an increase in the company's estimated LIFO income. The
company's income tax provision is primarily related to changes in
the company's LIFO reserve, which results in a tax valuation
allowance adjustment related to the company's deferred tax
assets.
AK Steel
AK Steel is a world leader in the production
of flat-rolled carbon, stainless and electrical steel products,
primarily for automotive, infrastructure and manufacturing,
construction and electrical power generation and distribution
markets. Headquartered in West
Chester, Ohio (Greater
Cincinnati), the company employs approximately 8,000 men and
women at eight steel plants, two coke plants and two tube
manufacturing plants across six states: Indiana, Kentucky, Michigan, Ohio, Pennsylvania and West Virginia.
Additional information about AK Steel is available at
www.aksteel.com.
Safe Harbor Statement
The statements in this release
reflect management's estimates and beliefs and are intended to be,
and hereby are identified as "forward-looking statements" for
purposes of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Words such as "expects,"
"anticipates," "believes," "intends," "plans," "estimates" and
other similar references to future periods typically identify such
forward-looking statements. These forward-looking statements
reflect the current belief and judgment of the company's
management, but are not guarantees of future performance or
outcomes. They are based on a number of assumptions and
estimates that are inherently subject to economic, competitive,
regulatory, and operational risks, uncertainties and contingencies
that are beyond the company's control, and upon assumptions with
respect to future business decisions and conditions that are
subject to change. Such statements are only predictions and involve
risks and uncertainties, resulting in the possibility that actual
events or performance will differ materially from such predictions
as a result of certain risk factors, including different or
lesser-than-expected impacts as a result of the pending and
anticipated future carbon steel trade case filings, including
impacts on the volume of foreign carbon steel imports, domestic
steel shipments and selling prices, or AK Steel's shipment levels,
carbon steel spot market prices, production levels or per ton
operating costs; reduced selling prices, shipments and profits
associated with a highly competitive industry with excess capacity;
changes in the cost of raw materials and energy; the company's
significant amount of debt and other obligations; severe financial
hardship or bankruptcy of one or more of the company's major
customers; reduced demand in key product markets due to competition
from aluminum or other alternatives to steel; increased global
steel production and imports; excess inventory of raw materials;
supply chain disruptions or poor quality of raw materials;
production disruption or reduced production levels; the company's
healthcare and pension obligations and related laws and
regulations; not timely reaching new labor agreements; major
litigation, arbitrations, environmental issues and other
contingencies; regulatory compliance and changes; climate change
and greenhouse gas emission limitations; conditions in the
financial, credit, capital or banking markets; the company's use of
derivative contracts to hedge commodity pricing volatility; ongoing
challenges faced by Magnetation; inability to fully realize
benefits of long-term cost savings initiatives; inability to hire
or retain skilled labor and experienced manufacturing and mining
managers; information technology security threats and cybercrime;
adverse effects on the company's operations and/or financial
results related to Magnetation's bankruptcy; failure to achieve the
estimated synergies and other expected benefits of the acquisition
of Severstal Dearborn, LLC and/or to integrate it successfully; as
well as those risks and uncertainties discussed in the company's
Annual Report on Form 10-K for the year ended December 31, 2014, as updated in subsequent
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K
filed with or furnished to the Securities and Exchange
Commission. As such, readers are cautioned not to place undue
reliance on forward-looking statements, which speak only to
management's plans, assumptions and expectations as of the date
hereof. The company disclaims any duty to update or alter any
forward-looking statements, except as required by applicable
law.
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SOURCE AK Steel