AK Steel today reported its financial results for the second quarter of 2016, showing a net income of $17.3 million compared to a net loss of $64.0 million a year ago.
Net sales of $1.49 billion for the second quarter of 2016 decreased from $1.69 billion in the second quarter of 2015, primarily as a result of lower automotive contract pricing compared to a year ago as well as a decrease in shipments.
In the recent second quarter, shipments of 1,555,500 tons represented a decline of 14 percent compared to 1,811,700 tons from the second quarter a year ago. The company’s decision to reduce exposure to the commodity carbon steel spot market resulted in a 320,000 ton decline in shipments to the distributors and converters markets, or a 48 percent reduction from a year ago. Shipments of higher value coated products, which are sold mostly to the automotive market, increased to 53 percent of the company’s total shipments in the current second quarter from 45 percent a year ago.
“Our strategic decision to reduce exposure to commodity spot markets, optimize our footprint and focus on higher value products continued to show positive results as we achieved another quarter of significant improvement,” said Roger K. Newport, Chief Executive Officer of AK Steel. “We continue to make operational improvements and relentlessly pursue margin enhancements, and we are seeing the benefit of these actions in our financial results.”
“Our strategic decision to reduce exposure to commodity spot markets, optimize our footprint and focus on higher value products continued to show positive results as we achieved another quarter of significant improvement,” said Roger K. Newport, Chief Executive Officer of AK Steel. “We continue to make operational improvements and relentlessly pursue margin enhancements, and we are seeing the benefit of these actions in our financial results.”