(By Balaseshan S) AK Steel Holding Corp. (NYSE:AKS), which produces flat-rolled carbon, stainless and electrical steels, reported a first quarter loss due to lower sales and shipments, despite 3% higher average selling price. Further, the company expects earnings for the second quarter.
Loss for the first quarter was $11.8 million or $0.11 per share, compared to a profit of $8.7 million or $0.08 per share last year.
Sales for the quarter declined 4.4 percent to $1.51 billion. Analysts had expected a loss of $0.11 per share on revenue of $1.50 billion. Shipments decreased to 1.33 million tons from 1.42 million tons.
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Stainless/electrical shipment declined to 214,900 tons from 224,400 tons, while coated shipments fell to 583,200 from 621,800. Shipment of cold-rolled decreased to 286,000 from 344,800, while tubular shipment rose to 36,300 from 34,200. Hot-rolled steel shipment increased to 170,500 from 161,100, while secondary steel shipment declined to 35,000 from 35,800.
Average selling price rose 3% to $1.138 per ton, primarily due to a richer product mix, increased contract sales and higher prices for certain products.
Operating profit declined to $4.1 million, or $3 per ton, from $19.5 million, or $14 per ton, last year. The latest quarter results include a LIFO credit of $12.4 million.
Separately, the company said its board of directors has declared a quarterly cash dividend of $0.05 per share of common stock, payable on June 8 to shareholders of record on May 15.
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AKS is trading down 0.68% at $7.29 on Tuesday. The stock has been trading between $5.51 and $17.07 for the past 52 weeks.