AK Steel today announced its financial results for the second quarter of 2018, reporting net income of $56.6 million, compared to net income of $77.2 million for Q2 2017.
Net sales for the second quarter of 2018 increased compared to the second quarter of 2017 due to higher selling prices and the effect of the Precision Partners acquisition. For the second quarter of 2018, net sales totaled $1.75 billion, compared to $1.56 billion in Q2 2017.
In a statement, the company said higher steel selling prices during the quarter more than offset cost increases for certain raw materials and supplies, including graphite electrodes, compared to the second quarter of 2017.
As for a Q3 outlook, AK Steel anticipates that market conditions will remain strong. The company expects an increase in flat-rolled shipments in the third quarter of approximately 5 percent compared to the second quarter of 2018. The company also expects relatively flat automotive shipments despite the seasonal July automotive plant downturns and higher carbon steel shipments to the distributors and converters market.