AK Steel Holding Corporation
) posted a net loss of $86.1 million or 63 cents per share in
first-quarter 2014 compared with a loss of $9.9 million or 7
cents per share in the year-ago quarter. The results were
affected by a planned and an unplanned blast furnace outage,
higher energy costs due to bad weather and a legal
In the reported quarter, AK Steel recorded a non-cash income
tax charge of $31.7 million or 23 cents per share, relating to a
change in its deferred tax asset valuation allowance.
Barring non-cash income tax charge, AK Steel's loss for the
quarter was 40 cents per share, narrower than the Zacks Consensus
Estimate of a loss of 43 cents.
Revenues, Pricing and Shipments
Revenues rose 1% year over year to $1,383.5 million in the
reported quarter but missed the Zacks Consensus Estimate of
Shipments declined by about 2.1% year over year to 1,262,100 tons
due to a drop in shipments of electrical steel and carbon steel
in the spot market, partly offset by higher automotive
Average selling price increased 3% year over year to $1,096
per ton due to better shipment mix of value-added products.
Cost and Margins
Total operating costs increased around 6.14% year over year to
$1,418.8 million in the first quarter. Operating loss for the
reported quarter was $35.3 million compared with an operating
income of $33.2 million recorded in the prior-year quarter.
During the quarter, the company incurred about $18 million in
costs as a result of the unplanned outage.
The company also incurred $29.4 million for planned outage
costs during the reported quarter compared with $1 million in the
year-ago quarter. The higher planned outage costs in the first
quarter of 2014 include the acceleration of a majority of
previously disclosed planned maintenance outage at Ashland Works
that was expected to be incurred in the second quarter of 2014.
The company does not expect to have any significant outages
planned for the balance of 2014.
Cash and cash equivalents, as of Mar 31, 2014, were $31.1
million, down 83.8% from $191.8 million as of Mar 31, 2013.
Long-term debt increased roughly 17.4% year over year to $1,657.2
In Mar 2014, AK Steel entered into a new $1.1 billion
asset-backed revolving credit facility with a group of lenders.
The new credit facility expiring in Mar 2019 replaced the
company's previous $1.1 billion asset-backed revolving credit
facility, which was set to expire in Apr 2016. The new credit
facility provides AK Steel with increased liquidity and greater
financial and strategic flexibility.
AK Steel plans to announce detailed second-quarter 2014
guidance in Jun 2014.
AK Steel currently has a Zacks Rank #3 (Hold).
Other companies in the steel and related industries worth
Companhia Siderurgica Nacional
). While NN and Companhia Siderurgica retain a Zacks Rank #1
(Strong Buy), NSK carries a Zacks Rank #2 (Buy).
AK STEEL HLDG (AKS): Free Stock Analysis
NN INC (NNBR): Free Stock Analysis Report
NSK LTD -UN ADR (NPSKY): Get Free Report
CIA SIDERUR-ADR (SID): Free Stock Analysis
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