Share “AK Steel takes bigger 1Q loss as costs rise”

AK Steel takes bigger 1Q loss as costs rise

Published on NewsOK Modified: April 22, 2014 at 2:41 pm •  Published: April 22, 2014
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NEW YORK (AP) — AK Steel reported a larger loss in the first quarter on higher energy costs and plant outages.

The company said Tuesday that the severe winter weather drove up its natural gas and electricity costs by $30 million compared to a year ago. AK Steel also absorbed costs related to planned outages at some of its facilities, and an unplanned outage at a blast furnace in Ashland, Ky.

Shares of AK Steel lost 15 cents, or 2.2 percent, to $6.56 in afternoon trading. Its shares have fallen more than 18 percent so far this year.

AK Steel said it lost $86.1 million, or 63 cents per share, in the three months ended March 31. A year ago it reported a loss of $9.9 million, or 7 cents per share.

Excluding a one-time charge the company said it lost 40 cents per share. FactSet says analysts expected a loss of 37 cents per share.

Revenue grew 1 percent, to $1.38 billion from $1.37 billion. Analysts expected $1.41 billion in revenue.

The West Chester, Ohio, company said shipments decreased 2 percent to 1.26 billion tons, but prices rose to $1,096 per ton.

Citi Investment Research analyst Richard Yu kept a "Buy" rating on the company's stock.

"Despite the weak results, we continue to believe that AK Steel should benefit from improving steel markets, lower input costs and a strong liquidity position," he wrote.