AK Steel on Tuesday reported a net loss of $724.2 million for the second quarter, or $6.55 a share, and announced that it will suspend its dividend, which it says will save $22 million a year.
The company has paid a quarterly dividend of 5 cents a share.
The results were impacted by a non-cash charge of $736 million for a valuation allowance for the company’s deferred tax assets, the company said.
Excluding the charge, the company said adjusted net income for the quarter was $11.4 million, an improvement over the net loss of $11.8 million during the first quarter. AK Steel reported income of $33.1 million in the second quarter a year ago.
Net sales for the quarter fell to $1.5 billion on shipments 1.3 million tons, compared to $1.8 billion on shipments of 1.5 million tons. The company said its average selling price for the second quarter was $1,152 per ton, a 1 percent increase over the first quarter of 2012, and about 3 percent lower than the second quarter of 2011.
“During the second quarter, sluggish domestic and global economic conditions impacted shipment volumes and selling prices for our steel products,” said James L. Wainscott, chairman, president and CEO of AK Steel, in a statement.
“Despite these market challenges, AK Steel recorded an improved operating profit and adjusted net income performance compared to the previous quarter.”