December 02, 2008

AK Steel Q1 net income up by 60% YoY

AK Steel reported net income of USD 101.1 million for the first quarter of 2008, an increase of 60% YoY compared to net income of USD 62.7 million for the first quarter of 2007, which included a USD 15.1 million pre tax, non cash pension curtailment charge.

Net sales in the first quarter of 2008 were USD 1,791.4 million on shipments of 1,578,400 tons compared to net sales of USD 1,719.9 million on shipments of 1,596,200 tonnes for the year ago first quarter. The company said its average selling price for the first quarter of 2008 was a record USD 1,135 per tonne, a 5% YoY increase over both the USD 1,078 per ton in the first quarter of 2007 and the USD 1,079 per ton level reached in the fourth quarter of 2007. The increase in selling prices resulted from higher spot and contract steel prices, coupled with increased raw material surcharges.

Operating profit for the first quarter of 2008 was USD 169.7 million, or USD 108 per ton, an increase of about 40% YoY compared to the operating profit of USD 120 million or USD 75 per ton, in the first quarter of 2007, which included the previously noted pension curtailment charge.

Mr James L Wainscott chairman, president & CEO of AK Steel said that "AK Steel is off to an excellent start in 2008 as we forge ahead on our plan to create more value for our shareholders. We executed well during the first quarter, and our employees were again recognized for their excellence in safety, quality and productivity."