AK Steel Reports Profitable 2017
By Metal Center News Staff
on Jan 31, 2018
AK Steel, West Chester, Ohio, reported a profitable year in 2017, despite a fourth-quarter loss. The steelmaker reported full-year net income of $10 million, a reversal of the $7.8 million loss posted in 2016.
In the fourth quarter, AK Steel posted a loss of $107.9 million compared with a loss of $62.4 million in the same quarter of 2016. The loss was attributed to planned maintenance outages and other charges. The company’s adjusted net loss was $19.5 million.
Full-year net sales of $6.08 billion increased 3.4 percent from 2016. The company’s fourth-quarter sales totaled $1.5 billion, a 5.2 percent increase compared with the previous year.
“We were pleased with our full-year results. Our fourth quarter was consistent with our expectation and reflected the impact of the major planned maintenance outages, which we completed on time and on budget,” said Roger K. Newport, CEO of AK Steel.
The company’s higher sales were driven by higher steel prices, as flat-rolled shipments declined 5.7 percent in 2017 to 5.6 million tons. Fourth-quarter tons shipped declined 3.4 percent to 1.34 million tons. The decline in flat-rolled shipments was largely driven by lower automotive demand as automakers managed their inventories, executives said.
“We are enthusiastic about 2018 as we anticipate solid demand in many of our key end-use markets, and we continue to unlock the opportunities being developed through our recent acquisition of Precision Partners,” said Newport.