AK Steel Sees Q1 Shipments 1.275-1.3M Tons, Loss $0.09-0.13/Share vs $0.09/Share Loss Estimate

AK Steel

today provided guidance for its first quarter of 2013 financial results. AK Steel said that it expects shipments of approximately 1,275,000 to 1,300,000 tons in the first quarter of 2013 compared to shipments of 1,406,100 tons in the fourth quarter of 2012.  For the first quarter of 2013, the company said it expects increased shipments to the automotive market compared to the previous quarter.  However, the company said that it projects its first quarter shipments to the spot market will decrease from the prior quarter as the normal cyclical improvement in spot market shipments has not yet materialized. The company expects its average selling price per-ton for the first quarter of 2013 to increase by approximately five percent, to about $1,060 per ton, from its average selling price per ton of $1,011 for the fourth quarter of 2012.  The expected increase in average selling price is primarily due to a higher-priced product mix compared to the previous quarter.  AK Steel said that it expects lower costs for the first quarter primarily due to lower raw material costs.  AK Steel said that it expects to record a non-cash tax benefit of approximately $4 million to $5 million for the first quarter of 2013.  This tax benefit is primarily attributable to a change in a tax valuation allowance related to the company's deferred tax assets.  As a result, AK Steel said it expects to incur a net loss of between $0.09 and $0.13 per diluted share of common stock for the first quarter of 2013, which would represent a significant improvement compared to the fourth quarter of 2012.