AK Steel reported third quarter 2019 financial results, with net income totaling $2.8 million, compared to $67.2 million in Q3 2018. Net sales for the quarter totaled $1.5 billion, compared to $1.7 billion in Q3 2018. Total shipments in Q3 reached 1.3 million tons, compared to 1.4 million tons in Q3 2018.
In July, the company provided annual guidance based on carbon hot-rolled coil pricing of approximately $555 per ton. In a press release, AK Steel said this annual guidance also indicated that for every $10 change in the carbon hot-rolled coil spot market price, annual earnings would be impacted by $5 to $7 million. However, since July, the pricing for carbon hot-rolled coil products has fallen more sharply than previously anticipated to an average of about $510 per ton for October, the company said, adding that this decline has also caused service centers to order at minimum levels.
As for an outlook, AK Steel expects the lower order volumes and the impact of the strike at General Motors to result in a reduction of flat-rolled steel shipments to between approximately 5.3 and 5.4 million tons for the full year, and these volatile events could result in a deviation from the company’s anticipated range of $5 to $7 million. The company now expects net income for the year to be in the range of $26 to $41 million.