The Associated Press
West-Chester based AK Steel posted an $11.8 million first-quarter loss Tuesday with lower shipments cutting into sales.
The loss amounted to 11 cents per share. During the same period last year, the company had a profit of $8.7 million, or 8 cents per share.
Revenue fell 4.6 percent to $1.51 billion as steel shipmentsdropped 6.8 percent to 1.3 million tons. Also on Tuesday, U.S. Steel said shipments fell by 3 percent in the quarter because of weakness in Europe, where mounting government debts have stalled economic growth in many nations.
While AK’s quarterly results matched Wall Street expectations, the domestic steel sector traded lower Tuesday and AK shares slipped 2 percent, or 15 cents to $7.19.
The company said its average selling price rose 2.6 percent to $1,138 per ton, boosted by an improved mix of products, an increase in contract sales and higher prices for come products.
AK Steel Holding Corp. said market conditions improved slowly, but steadily improved during the quarter. The company added that it expects to post a profit for the second quarter, but didn’t release specifics.
Analysts polled by FactSet expect a second-quarter profit of 21 cents per share.