AKS - Free Post Earnings Research Report: AK Steel's Quarterly Revenues Advanced 8.18%
Stock Monitor: Ossen Innovation Post Earnings Reporting
LONDON, UK / ACCESSWIRE / May 25, 2018 / If you want access to our free earnings report on AK Steel Holding Corp. (NYSE: AKS) (''AK Steel''), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=AKS. On April 30, 2018, AK Steel reported financial results for the first quarter of 2018 ending March 31, 2018. The Company surpassed analysts' estimates for revenue as well as earnings in Q1 FY18. It must be noted that the Company changed its accounting method for valuing inventories to the average cost method from the LIFO method in Q1 FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, AK Steel Holding most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
AK Steel's total revenues reached $1.66 billion for Q1 FY18, reflecting an increase of 8.18% from $1.53 billion in Q1 FY17. The reported revenue number exceeded analysts' consensus estimates of $1.55 billion.
In the quarter under review, AK Steel had flat-rolled steel shipments of 1.43 million tons, down 1.74% from 1.46 million tons in the year ago same quarter. The Company's selling price per flat-rolled steel ton increased 3.98% to $1,045 on a y-o-y basis.
During Q1 FY18, AK Steel's cost of products sold was $1.46 billion, 14.63% higher than $1.28 billion in Q1 FY17. The Company incurred operating expenses of $1.60 billion in the reported quarter, an increase of 13.65% from $1.40 billion in the previous year's corresponding quarter. AK Steel's operating profit fell 50.96% to $63.60 million in Q1 FY18 from $129.70 million in Q1 FY17.
Net income attributable to AK Steel for the quarter ending March 31, 2018, was $28.70 million compared to $84.40 million in the same period last year. The Company's diluted income per share also fell to $0.09 in Q1 FY18 from $0.26 in Q1 FY17. The reported diluted earnings per share (DEPS) for Q1 FY18 exceeded analysts' consensus estimates of $0.03 per share.
The reported earnings excluded net income attributable to non-controlling interest, and included interest expenses, interest income, depreciation and amortization. AK Steel had an adjusted EBITDA of $118.70 million in Q1 FY18, 33.39% lower than $178.20 million in Q1 FY17. The Company's adjusted EBITDA margin also fell 4.40 percentage points to 7.20% in the reported quarter from 11.60% in the year ago same quarter. These results were driven by higher steel selling prices and the effect of the Precision Partners' acquisition, offset by higher costs as a result of the Middletown Works unplanned outage, and increased costs for raw materials. On the other hand, the first quarter of 2017 gained from lower cost raw materials, higher automotive sales, and surcharge revenue for specialty steels.
Cash Matters
AK Steel had cash and cash equivalents of $44.50 million as on March 31, 2018, an increase of 17.11% from $38 million as on December 31, 2017. The Company's long-term debt also declined 0.32% to $2.10 billion at the end of Q1 FY18 from $2.11 billion at the end of Q4 FY17.
AK Steel's cash flow from operating activities was $65.60 million for the three months ending March 31, 2018, an increase of 80.72% from $36.30 million in the same period last year. The Company made capital investments of $37.90 million in the reported quarter, 16.62% higher than $32.50 million in the previous year's same quarter.
Outlook
AK Steel expects market conditions to improve in the second quarter of 2018. The Company expects shipments of carbon and stainless steels as well as tubular and stamping products, to benefit from continued strength in the automotive market. Moreover, AK Steel expects increased shipments into both the distributor and converter, and the infrastructure and manufacturing markets.
AK Steel expects flat-rolled shipments in Q2 FY18 to be approximately 5% to 7% higher than Q1 FY18. The Company expects an average selling price per flat-rolled ton to be about $1,075 and outage costs to be approximately $20 million to $25 million in Q2 FY18. AK Steel expects Q2 FY18 adjusted EBITDA margin to improve by 1.50 to 2 percentage points from Q1 FY18.
Stock Performance Snapshot
May 24, 2018 - At Thursday's closing bell, AK Steel's stock was slightly up 0.22%, ending the trading session at $4.51.
Volume traded for the day: 9.72 million shares.
After yesterday's close, AK Steel's market cap was at $1.46 billion.
The stock is part of the Basic Materials sector, categorized under the Steel & Iron industry.
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