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AK Steel returns to profitability in 3Q

AK Steel returns to profitability in 3Q

Steel producer AK Steel Holding Corp. on Tuesday posted a slim profit in the third quarter, helped by stronger demand, and said it expects steel shipments to pick up in the final months of the year.
The results come after three consecutive quarterly losses at AK Steel, a supplier to the U.S. auto industry. Automakers ramped up production in recent months in response to the government's wildly successful "Cash for Clunkers" auto rebate program.
Like other steel companies, AK Steel has faced sharply lower demand since late last year, when the economic downturn undermined important steel buyers in the auto and construction industries. That forced AK Steel to lay off workers and idle plants.
But the steel industry has improved in recent months, with prices and production rising during the quarter. Still, the market for the metal used in everything from refrigerators to pickup trucks remained much weaker that it was a year earlier.
Analysts say AK Steel _ which garnered about a third of its 2008 sales from auto companies _ is particularly well-positioned to benefit from an eventual auto industry recovery.
The company, based in West Chester, Ohio, said it earned $6.2 million, or 6 cents per share, for the three months ended in September. That is down sharply from a profit of $188.3 million, or $1.67 per share, during the same period a year earlier.
Revenue slid 52 percent to $1.04 billion from $2.16 billion a year earlier.
Analysts expected AK Steel to earn a penny per share on revenue of $1.03 billion, according to a survey by Thomson Reuters. Wall Street typically excludes one-time charges in its earnings estimates.


Updated : 2021-08-02 05:40 GMT+08:00