Update: AK Steel's Stock Holds On To Early Morning Gains Following Q4 Results

Shares of
AK Steel Holding Corporation
were trading higher by more than 5 percent early Tuesday afternoon following the release of the company's
fourth quarter results. AK Steel's stock opened for trading at $2.00 on Tuesday and quickly see-sawed to an intra-day low of $1.89 and intra-day high of $2.15. By mid-afternoon the stock was trading at $1.93, up 6.04 percent on the day. AK Steel Holding said that it earned $0.30 per share in the fourth quarter on revenue of $1.54 billion. Wall Street analysts were expecting the company to earn $0.01 per share on revenue of $1.51 billion. AK Steel Holding also reported a net loss of $147.1 million in the fourth quarter after reporting a net income of $13.5 million in the same quarter a year ago. Adjusted net income for the quarter totaled $53.8 million, adjusted for certain charges totaling $200.9 million. During the fourth quarter, AK Steel shipped 1,655,800 tons of steel, marking a decrease from the 2,010,200 tons of the steel the company shipped a year ago. Management attributed the decline in shipments due to a decision to focus on the sales of higher margin, value-added products and reduce sales to the carbon steel spot market. AK Steel also noted that its average selling price for the steel during the fourth quarter was $929 per ton - 2 percent higher than prior quarter. The improvement in selling price was mostly attributed to a greater proportion of higher value steels sold to the automotive market. However, AK Steel's average selling price during the fourth quarter was 6 percent lower than the same quarter a year ago, mostly due to the impact on prices from "more unfairly traded imports in the supply chain and a decline in raw material costs partially offset by a richer sales mix as sales to the spot market declined." "We achieved solid operational improvements during the fourth quarter as a direct result of focusing on the things that we can control," said Roger K. Newport, AK Steel's Chief Executive Officer. Mr. Newport continued, "We intentionally reduced our exposure to the spot markets as part of our margin enhancement initiatives. These initiatives include investing resources where value is realized, reflecting our margin enhancement focus."

Posted In: AK SteelCommoditiesRoger NewportSteelSteel PricesSteel Spot Marketsteel stocksEarningsNews

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