AK Steel Enjoys Profitable Quarter
By Metal Center News Staff
on Apr 26, 2017
AK Steel, West Chester, Ohio, reported net income of $62.5 million in first-quarter 2017, an improvement on the $13.6 million loss in last year’s first quarter. "Our first-quarter performance reflected the ongoing benefits of our margin enhancement activities, strong operational focus and an improved pricing environment," said Roger K. Newport, AK Steel CEO. "We also made great progress in the quarter on new product development as we continue to focus on introducing innovative products."
The steelmaker’s net sales for the quarter increased 1 percent to $1.53 billion, despite a 10 percent decline in its shipments to 1,486,900 tons. Its average selling price per ton increased 12 percent to $1,022 due to higher average selling prices on both contract and spot market sales, higher surcharges on specialty steel products and an improved product mix. The company continues to strive to reduce sales of lower-margin products.
AK’s increase in net sales and its continued focus on cost management, partially offset by higher raw material and energy costs, contributed to an adjusted EB ITDA of $142.9 million for the quarter, a 76 percent increase from last year.