AK Steel beats by $0.03, reports revs in-line
Reports Q2 (Jun) loss of $0.36 per share, $0.03 better than the Capital IQ Consensus Estimate of ($0.39); revenues rose 10.4% year/year to $1.69 bln vs the $1.71 bln consensus.
- Co announces Q2 shipments of 1,811,700 tons vs 1,397,500 tons last year and 1,750,500 tons in 1Q15.
- "Continued strength in the automotive market contributed to an overall increase in automotive market and total shipments quarter-over-quarter for the company...Unfortunately, however, continued high levels of what we believe are unfairly traded imports significantly impacted selling prices in the carbon steel spot market, which negatively impacted the company's results."
- Q3 Outlook: Co expects to generate improved results for Q3 and 2H15 relative to Q2 and 1H15, respectively. Chief among these reasons are anticipated higher shipments, improving carbon steel spot market prices, increased production levels resulting in lower per ton operating costs, and the continuing benefit of lower raw materials costs, in particular, iron ore. The company expects shipments to customers in its largest market, automotive, to remain strong. In addition, the company expects imports of carbon steel products will continue to decline in 2H15, principally because of the pending and anticipated future steel industry trade cases.