AK Steel Guides Investors to a Q1 Loss
Mar 23rd 2013 7:35AM
Updated Mar 23rd 2013 7:40AM
West Chester, Ohio-based AK Steel updated investors on its expectations for steel shipments, average selling prices, and earnings for Q1 in an announcement Friday.
Q1 2013 steel shipments are expected to range between 1.275 million and 1.3 million tons in Q1, a 7% to 10% sequential decline from Q4 2012 levels. The amount of steel shipments destined for the automotive sector, however, is expected to increase. This increase will be offset by what the company calls "normal cyclical" weakness in the spot steel market.
AK is projecting a 5% sequential increase in average selling prices per ton, to approximately $1,060, attributing this rise to improved "product mix." Raw material costs are expected to decline.
Despite higher prices and lower costs, however, the company expects to lose between $0.09 and $0.13 per diluted share in Q1, numbers that the company defended as representing "a significant improvement" compared with the fourth quarter of 2012 -- in which quarter AK recorded a $1.90-per-diluted-share net loss. A one-time tax-accounting-related charge of $4 million to $5 million will contribute to the Q1 loss.
AK shares declined 4.6% in Friday trading, closing at $3.31.
The article AK Steel Guides Investors to a Q1 Loss originally appeared on Fool.com.Fool contributor Rich Smith and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.