AK Steel Swings To Profit, Tops Street; Stock Up -

(RTTNews) - AK Steel Holding Corp. (AKS) Tuesday reported a swing to fourth-quarter profit, on higher shipments to the automotive sector, a two percent climb in sales prices and better margins, partly offset by lower carbon shipments to the spot market. Meanwhile, results for the prior-year quarter were hurt by pension and income tax charges.

AK Steel's quarterly results topped Wall Street estimates and following the announcement, its shares jumped 14 percent in morning trade on the New York Stock Exchange.

"As we enter 2014, we will build upon our solid foundation for the future as we continue to make progress and add value to AK Steel," said CEO James Wainscott.

AK Steel's results come amid soft conditions for the steel industry which is still grappling with volume and price problems. On Monday, United States Steel (X) reported a wider quarterly loss, stung by impairment charges and lower sales.

For the fourth quarter, West Chester, Ohio-based AK Steel posted net income of $35 million or $0.26 per share, compared with a net loss of $230 million or $1.89 per share last year.

Results for the quarter included a non-cash income tax benefit of $22.7 million, while the prior year quarter included pension corridor charge of $157 million and a non-cash income tax charge of $96 million.

Excluding items, adjusted earnings for the quarter were $12.5 million or $0.09 per share, compared with an adjusted loss of $36.6 million or $0.30 per share a year ago.

On average, 16 analysts polled by Thomson Reuters expected earnings of $0.02 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter increased to $1.46 billion from $1.42 billion in the prior year. Thirteen analysts had a consensus revenue estimate of $1.44 billion for the quarter.

Shipments for the quarter climbed to 1.42 million tons from 1.4 million tons last year. Average selling price was $1,031 per ton, compared with $1,011 per ton a year ago.

The company also benefited from cost of products that slid to $1.32 billion from $1.35 billion last year.

Among others in the industry, Steel Dynamics Inc. (STLD) on Monday reported a drop in quarterly profit despite higher sales, due mainly to the absence of a tax benefit that was included a year ago.

AK Steel stock is trading at $6.82, up $0.83 or 13.86%, on a volume of 6.7 million shares.