Ohio-based flat-rolled steelmaker AK Steel lowered its profit expectations for 2019 as lower carbon steel prices weigh on earnings.
The company reduced its adjusted profit guidance for 2019 to $153mn-173mn from prior expectations of $160mn-180mn because of a $30/st drop in spot carbon hot-rolled coil prices over the course of the first quarter to $690/st. The adjusted profit figure does not include a $77.4mn charge related to the closure of its Ashland Works, which was announced in January. AK Steel also expects maintenance outages to be heavier in the second and fourth quarters, with costs up to $80mn.
The Ashland Works charge drove an overall first quarter loss of $4.5mn, down from a profit of $28.7mn in the first quarter of 2018. Excluding the Ashland impact, adjusted profit was $72.9mn.
Overall steel shipments in the first quarter fell by 3pc to 1.39mn st, down from 1.43mn st in the same period of 2018, while average selling prices rose by 6.4pc to $1,112/st.
First quarter shipments for AK Steel fell across all of its products except stainless and electrical. Coated product shipments fell to 713,700st, down from 734,500st. Cold-rolled products fell by 9.1pc to 256,800st from the prior year, while hot-rolled shipments fell by 3pc to 169,100st from a year ago.
Stainless steel and electrical shipments rose by 2.9pc to 206,600st, up from 200,700st in the first quarter of 2018.
