AK Steel today reported its financial results for the third quarter of 2018. Net income was $67.2 million, versus $22.3 million a year ago. Revenues totaled $1.74 billion, a 16 percent increase from the third quarter 2017, due to higher selling prices and higher shipments, the company said in a press release.
Flat rolled steel shipments for the quarter totaled, 1.42 million tons, compared to 1.37 million tons in Q3 2017.
As for an outlook, the company anticipates that market conditions will remain strong in the fourth quarter. Accordingly, the company expects fourth quarter flat rolled steel shipments to be essentially flat compared to the third quarter, as the seasonal slowdown in automotive shipments is offset by strong demand from the distributors and converters market, which includes spot market opportunities.
Additionally, due to the shift in mix from seasonally lower automotive shipments and increased sales into the distributors and converters market, including spot market sales, AK Steel’s average selling price is expected to decline by about 2 to 3 percent. Increased shipments into the distributors and converters market should reduce the average selling price, as products sold into those markets typically have lower selling prices than most of the company’s other products.