AK Steel Holding Corp Earnings Cheat Sheet: Sees Profit Move Up

S&P 500 (NYSE:SPY) component AK Steel Holding Corp (NYSE:AKS) reported its results for the second quarter. AK Steel Holding Corporation is a holding company of AK Steel Corporation. The steelmaker’s main products include flat-rolled carbon, stainless and electrical steels, and aluminum-coated stainless steel. The company has seven plants in Indiana, Kentucky, Ohio and Pennsylvania.

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AK Steel Earnings Cheat Sheet for the Second Quarter

Results: Net income for AK Steel Holding Corp rose to $32.4 million (30 cents per share) vs. $26.7 million (24 cents per share) in the same quarter a year earlier. This marks a rise of 21.3% from the year earlier quarter.

Revenue: Rose 12.3% to $1.79 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: AKS fell short of the mean analyst estimate of 50 cents per share. Analysts were expecting revenue of $1.81 billion.

Quoting Management: “AK Steel’s second quarter results represent another quarter of solid progress, as we continue along the ‘road to recovery’ in 2011,” said James L. Wainscott, Chairman, President and CEO. “In fact, despite experiencing much higher iron ore prices than anticipated, we achieved our best quarter in the past six quarters in terms of shipments, operating profit, net income and earnings per share.”

Key Stats:

Gross margin shrank 1.1 percentage points to 9.4%. The contraction appeared to be driven by increased costs, which rose 13.7% from the year earlier quarter while revenue rose 12.3%.

Revenue has risen the past four quarters. Revenue increased 12.5% to $1.58 billion in the first quarter. The figure rose 5.4% in the fourth quarter of the last fiscal year from the year earlier and climbed 51.4% in the third quarter of the last fiscal year from the year-ago quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 9 cents, and in the fourth quarter of the last fiscal year, it was ahead by 14 cents.

Competitors to Watch: Steel Dynamics, Inc. (NASDAQ:STLD), United States Steel Corp. (NYSE:X), Nucor Corporation (NYSE:NUE), Ternium S.A. (NYSE:TX), Commercial Metals Company (NYSE:CMC), Universal Stainless & Alloy Products (NASDAQ:USAP), Allegheny Tech. Inc. (NYSE:ATI), Ampco-Pittsburgh Corp. (NYSE:AP), ArcelorMittal (NYSE:MT), and Schnitzer Steel Industries, Inc. (NASDAQ:SCHN).

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(Source: Xignite Financials)