AK Steel reported a GAAP earnings per share loss of 2 cents on revenue of $1.49 billion. Wall Street analysts were expecting the company to earn 4 cents per share on revenue of $1.52 billion. Adjusted EBITDA for the quarter fell from $156.6 million, or 10.8 percent of net sales, a year ago to $69.2 million, or 4.6 percent of net sales.
Total flat-rolled steel shipments fell 2 percent from a year ago to 1.3686 million tons due to softer demand from the automotive market, the company said. Average selling price per flat-rolled steel ton did rise 2 percent from a year ago to $1,021 due to the higher average selling price on contract and spot market sales and higher surcharges on specialty steels.
"Our financial results for the third quarter are in line with the guidance we provided in July. We are particularly pleased to have completed the acquisition of Precision Partners during the quarter as we execute on our downstream strategy," said Roger K. Newport, CEO of AK Steel. "Our ongoing efforts to strengthen our balance sheet continued during the quarter with the successful refinancing of our 2022 senior notes and extension of our credit facility. These actions position us well for the future."
Steel Stocks Lower
AK Steel's poor earnings report was felt across nearly the entire steel and commodity sector although to various degrees.
- United States Steel Corporation X: down 4.99 percent at $25.12.
- Timkensteel Corp TMST: down 2.91 percent at $14.37.
- Gerdau SA (ADR) GGB: down 1.63 percent at $3.32.
- Steel Dynamics, Inc. STLD: down 0.74 percent at $37.46.
- ArcelorMittal SA (ADR) MT: down 0.59 at $28.74.
- Nucor Corporation NUE: down 0.19 percent at $58.36.
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