AK Steel announces Q3 and 9M 2012 financial results
AK Steel has reported a net loss of USD 60.9 million or USD 0.55 per diluted share of common stock for the third quarter of 2012 as compared to a net loss of USD 3.5 million or USD 0.03 per diluted share for the third quarter of 2011. The 2012 third quarter results include a non cash income tax expense of USD 33.1 million or USD 0.30 per diluted share as a result of the change in a tax valuation allowance.
The company reported a loss before income taxes of USD 28.7 million for the third quarter of 2012 as compared to a loss before income taxes of USD 6.8 million for the third quarter of 2011.
Net sales for the third quarter of 2012 were USD 1,463.5 million on shipments of 1,363,500 tonnes as compared to net sales of USD 1,585.8 million on shipments of 1,368,800 tonnes for the year ago third quarter and net sales of USD 1,538.4 million on shipments of 1,335,800 tonnes for the second quarter of 2012. The company said its average selling price for the third quarter of 2012 was USD 1,073 per ton, a 7% decrease from both the second quarter of 2012 and the third quarter of 2011. The lower average selling price for the third quarter 2012 compared to the second quarter of 2012 was primarily due to lower spot market prices for carbon steel products, reduced raw material surcharges and a lower value added product mix.
The company reported adjusted EBITDA of USD 27.2 million or USD 20 per tonne for the third quarter of 2012 as compared to adjusted EBITDA of USD 59.3 million or USD 43 per tonne for the third quarter of 2011. The adjusted EBITDA excludes EBITDA of non controlling interests as shown in the financial table included with this news release. Included in the results for the third quarter of 2012 were planned major maintenance outage costs of USD 28.5 million, primarily for outages at the company's Ashland Works blast furnace and Middletown Works hot strip mill, compared to outage costs of USD 1.7 million for the third quarter of 2011. The 2012 third quarter results include a LIFO credit of USD 27.5 million as compared to a LIFO credit of USD 9.5 million in the third quarter of 2011 and a LIFO credit of USD 18.3 million for the second quarter of 2012.
For the first nine months of 2012, the company reported a net loss of USD 796.9 million or USD 7.21 per diluted share, which includes income tax expense of USD 767.3 million, almost entirely due to a non cash change in a tax valuation allowance. For the corresponding 2011 period, the company reported net income of USD 38.3 million or USD 0.35 per diluted share.
The company reported a loss before income taxes of USD 9.7 million for the first nine months of 2012 as compared to income before income taxes of USD 64.4 million for the first nine months of 2011.
Net sales for the first nine months of 2012 were USD 4,510.6 million compared to USD 4,958.8 million for the first nine months of 2011. Shipments for the first nine months of 2012 were 4,025,200 tonnes compared to 4,288,900 tonnes for the first nine months of 2011.
The company reported adjusted EBITDA of USD 164.4 million or USD 41 per tonne for the first nine months of 2012 as compared to adjusted EBITDA of USD 253.6 million or USD 59 per tonne for the same period of 2011. Earnings for the first nine months of 2012 were negatively impacted by the decrease in sales along with higher coke costs, which were partially offset by decreases in costs for carbon scrap and energy.
Mr James L Wainscott chairman, president & CEO of AK Steel said that "Challenging domestic and global economic conditions continue to weigh on shipping volumes and prices. Additionally, while we expect to enjoy lower raw material costs in the future, we are still working through some higher cost raw material inventories."
The company ended the third quarter of 2012 with USD 47.1 million of cash and cash equivalents and USD 557.8 million of availability under the company's revolving credit facility, for total liquidity of USD 604.9 million.
Source - AK Steel Corporation