uploads///part  revenues

AK Steel Missed the Shipment Guidance Again

By

Jan. 29 2019, Updated 9:35 a.m. ET

Shipment

Article continues below advertisement

Lower revenues

AK Steel posted revenues of $1.67 billion in the fourth quarter—lower than expected. The company posted revenues of $1.73 billion in the third quarter and $1.49 billion in the fourth quarter of 2017. During the third-quarter earnings call, AK Steel said that it expects “fourth quarter flat rolled steel shipments to be essentially flat compared to the third quarter.” The company saw a sequential fall of 2%–3% in its fourth-quarter average selling prices due to less automotive shipments.

Looking at AK Steel’s fourth-quarter financial performance, its flat-rolled shipments fell 2.5% sequentially. AK Steel missed its shipment guidance in the third quarter due to fewer automotive shipments. AK Steel attributed fewer automotive shipments to inventory adjustments by automakers. Steel Dynamics (STLD) also missed its revenue estimates in the fourth quarter. While Nucor’s (NUE) fourth-quarter revenues are expected to fall sequentially, U.S. Steel Corporation (X) is expected to report slightly higher revenues.

Average selling prices

AK Steel’s ASP (average selling price) was better than expected in the fourth quarter. The company reported a flat-rolled ASP of $1,106 per ton in the fourth quarter—compared to $1,114 per ton in the third quarter.

AK Steel’s 2019 guidance didn’t look impressive, which we’ll discuss in the next part.

Advertisement

More From Market Realist

  • Steel coils at a X plant
    Basic Materials
    U.S. Steel Stock (X) Could Rise More Amid Commodity Supercycle
  • New home construction
    Basic Materials
    How Investors Can Play Surging Lumber Prices in 2021
  • MP Materials mine
    Basic Materials
    MP Materials (MP) Is an Attractive Play on Rare Earths
  • Woman looking at data
    Basic Materials
    Should You Buy SLV Stock Before Another Silver Short Squeeze?
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.