AK Steel Tops $100 Profit Per Ton |
Tuesday, October 23, 2007 10:20:00 AM - Middletown Ohio |
by Bill Rogers For the first time in the history of the company, AK Steel has reported profits of over $100 per ton, a long-time goal by AK management.
At $109/ton, AK's third quarter net income was over four times what it was one year ago. AK Steel made an income of $108.4 million in the three months ending with September in 2007, compared to $26 million for the same period in 2006.
At the same time, sales and shipments for the third quarter of 2007 were only 11% and 5% higher, respectively than a year ago.
AK Steel has this to say about the immediate future:
"AK Steel said that it expects its fourth-quarter 2007 shipments to be
comparable to third-quarter 2007 levels, with average per-ton selling
prices slightly lower than for its third-quarter 2007 level. The
company also anticipates higher costs in the fourth quarter, as
compared to the third quarter, including $20 million of higher planned
maintenance outage costs, and an increase of $30 million for LIFO
expense. AK Steel said it expects to report an operating profit of
approximately $70 per ton in the fourth quarter of 2007."
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