AK Steel Earnings: Reports a Loss as Revenue DIPS by Double Digits

S&P 500 (NYSE:SPY) component AK Steel Holding Corp (NYSE:AKS) dropped to a second quarter loss, but results topped expectations. AK Steel Holding is a holding company of AK Steel Corporation. The steelmaker makes such products as flat-rolled carbon, stainless and electrical steels, and aluminum-coated stainless steel.

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AK Steel Holding Corp Earnings Cheat Sheet

Results: Reported a loss of $724.2 million ($6.55 per diluted share) in the quarter. AK Steel Holding Corp had a net income of $33.1 million or 30 cents per share in the year-earlier quarter.

Revenue: Fell 14.1% to $1.54 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: AK Steel Holding Corp reported adjusted net income of 10 cents per share. By that measure, the company beat the mean estimate of 6 cents per share. Analysts were expecting revenue of $1.55 billion.

Quoting Management: “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. “Despite these market challenges, AK Steel recorded an improved operating profit and adjusted net income performance compared to the previous quarter.” The company ended the second quarter of 2012 with $37.4 million of cash and cash equivalents and $671.7 million of availability under the company’s revolving credit facility, for total liquidity of approximately $709 million.

Key Stats:

The company beat estimates last quarter after being in line with expectations in the first quarter with a loss of 11 cents per share.

Revenue has dropped in the past two quarters. In the first quarter, revenue declined 4.6% to $1.51 billion from the year-earlier quarter.

Looking Forward: Expectations for the company’s performance in the upcoming quarter are lower than they were ninety days ago. Over the past three months, the average estimate for the third quarter has fallen from a profit of 24 cents per share to a loss of one cent. For the fiscal year, the average estimate has moved down from a profit of 48 cents a share to a loss of 8 cents over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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