AK Steel announced that its net loss of USD 9.9 million, or USD 0.07 per diluted share of common stock, for the Q1 ended March 31st 2013, compared to a net loss of USD 11.8 million, or USD 0.11 per diluted share, for the Q1 of 2012.
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This also compares to a net loss of USD 230.4 million, or USD 1.89 per diluted share, or an adjusted net loss of USD 36.6 million, or USD 0.30 per diluted share, for the Q1 of 2012. The adjusted net loss for the Q1 of 2012 excludes a pension corridor charge and a non cash income tax charge as a result of a change in a deferred tax asset valuation allowance and is reconciled below.
Net sales for the Q1 of 2013 were USD 1,369.8 million on shipments of 1,289,800 tonne, compared to net sales of USD 1,508.7 million on shipments of 1,325,900 tonne for the year ago Q1 and net sales of USD 1,423.1 million on shipments of 1,406,100 tonne for the Q4 of 2012. The decreased shipments in the Q1 of 2013 compared to both prior periods were primarily due to lower shipments to the carbon spot market, partially offset by increased shipments to the automotive market.
The company said that its average selling price for the Q1 of 2013 was USD 1,062 per tonne, a 7% decrease from the Q1 of 2012, but a 5% increase from the Q4 of 2012. The higher average selling price for the Q1 of 2013 compared to the Q4 of 2012 was primarily due to a higher value added product mix and higher carbon spot market prices, partially offset by lower selling prices for electrical steel products globally. The lower average selling price for the first quarter of 2013 compared to the Q1 of 2012 was primarily due to lower spot market prices for carbon steel products, reduced raw material surcharges and lower selling prices for electrical steel products globally.
Mr James L Wainscott, chairman, President and CEO of AK Steel, said that "AK Steel's results reflect significant progress for the company during the Q1. We experienced increased shipments to the automotive market, a higher-priced product mix, and lower costs, primarily for raw materials."
Mr Wainscott said that "While the automotive market was a bright spot for our business, markets remained challenging for some products, particularly those in the spot market. Simply put, global steelmaking capacity continues to exceed demand. Additionally, the cyclical improvement in spot market pricing we normally see during the first quarter did not materialize and is expected to occur later this year."
The company ended the Q1 of 2013 with total liquidity of USD 1,052.6 million, consisting of cash and cash equivalents and USD 874.4 million of availability under the company's revolving credit facility. There were no outstanding borrowings under the company's revolving credit facility as of March 31st 2013.
Tags: A36 steel, A283GrD steel, A283GrC steel
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