AK Steel Results Top Estimates - Update

(RTTNews) - AK Steel (AKS) Tuesday said its loss for the second quarter narrowed from a year ago, driven by higher shipments and prices, with results topping Wall Street estimates.

The company saw improvements in its businesses despite some significant challenges, said CEO James Wainscott in a statement. AK Steel shares were up 3.7 percent in morning trade on the New York Stock Exchange, following the announcement of results.

The West Chester, Ohio-based steel company posted a quarterly net loss of $17 million or $0.13 per share, compared with a loss of $40 million or $0.30 per share last year.

Excluding derivative losses, adjusted earnings for the quarter were $2.9 million or $0.02 per share.

On average, 11 analysts polled by Thomson Reuters expected a loss of $0.04 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the second quarter climbed to $1.53 billion from $1.40 billion in the prior year. Thirteen analysts had a consensus sales estimate of $1.51 billion for the quarter.

Shipments rose to 1.4 million tons from 1.32 million tons a year ago, and average selling price per ton rose to $1,095 from $1,061.

Last week, AK Steel agreed to acquire the Severstal Dearborn steel mill from Russia-based OAO Severstal (SVST.L) for $700 million. The deal increases AK Steel's operational flexibility and enables significant cost-based synergies. Also bigger rival Steel Dynamics (STLD) agreed to buy Severstal Columbus from OAO Severstal for $1.625 billion.

AK Steel stock is trading at $9.09, up $0.32 or 3.65%, on a volume of 4.8 million shares.