| AK Steel (AKS) Reports Wider Q1 Loss, Revenues Rise Y/Y - Analyst Blog | |
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Steel maker AK Steel Holding Corporation AKS reported a net loss of $306.3 million or $1.72 per share in first-quarter 2015 compared with a loss of $86.1 million or 63 cents per share in the year-ago quarter. The company’s results were hurt by unfairly traded steel imports which significantly impacted shipments and selling prices.
In the reported quarter, AK Steel recorded a non-cash impairment charge of $256.3 million or $1.44 per share, related to the company's investment in Magnetation LLC.
Barring non-cash impairment charges, AK Steel’s loss for the quarter was 28 cents per share, wider than the Zacks Consensus Estimate of a loss of 24 cents. AK Steel Holding Corporation - Earnings Surprise | FindTheCompany Revenues, Pricing and Shipments
Revenues rose 26.6% year over year to $1,750.9 million in the reported quarter, but missed the Zacks Consensus Estimate of $1,790 million.
Shipments increased by about 38.7% year over year to 1,750,500 tons due to the addition of shipments from the Dearborn Works facility since its acquisition in Sep 2014, coupled with continued strong shipments of carbon and stainless steel to the automotive markets.
Average selling price decreased roughly 9% year over year to $999 per ton, due to the combined effects of lower carbon steel spot market selling prices and higher proportion of hot-rolled coil shipments in the overall sales mix following the Dearborn acquisition.
Costs and Margins
Total operating costs increased around 21% year over year to $1,717.1 million in the first quarter of 2015. Operating profit for the reported quarter was $33.8 million compared with an operating loss of $35.3 million recorded in the prior-year quarter.
Financial Position
Cash and cash equivalents, as of Mar 31, 2015, were $89.4 million, up nearly three-fold from $31.1 million as of Mar 31, 2014. Long-term debt increased roughly 52.6% year over year to $2,528.8 million.
Outlook
AK Steel plans to announce its detailed guidance for the second quarter of 2015 in June.
AK Steel currently carries a Zacks Rank #5 (Strong Sell).
Better-ranked companies in the basic materials sector include Gold Fields Ltd. GFI, Evraz Highveld Steel & Vanadium Ltd. HGVLY and LB Foster Co. FSTR. While Gold Fields sports a Zacks Rank #1 (Strong Buy), both Evraz Highveld Steel & Vanadium and LB Foster carry a Zacks Rank #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AK STEEL HLDG (AKS): Free Stock Analysis Report GOLD FIELDS-ADR (GFI): Free Stock Analysis Report FOSTER LB CO (FSTR): Free Stock Analysis Report EVRAZ HIGHVELD (HGVLY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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VanEck Vectors Global Alternative Energy ETF
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PRODUCER |
CODE : GFI |
ISIN : US38059T1060 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Gold Fields is a gold producing company based in South africa. Gold Fields produces gold, copper in Australia, in Ghana, in Peru and in South Africa, develops gold in Mali, and holds various exploration projects in Peru. Its main assets in production are ST IVES MINE and AGNEW in Australia, BEATRIX MINE, DRIEFONTEIN, KLOOF MINE, SOUTH DEEP, KLOOF and BEATRIX in South Africa, DAMANG, TARKWA and DAMANG PROJECT in Ghana and CERRO CORONA in Peru, its main asset in development is KOMANA in Mali and its main exploration properties are LOBO in Philippines and CHUCAPACA and CANAHUIRE in Peru. Gold Fields is listed in France, in South Africa and in United States of America. Its market capitalisation is 718.7 millions as of today (€ 643.9 millions). Its stock quote reached its lowest recent point on November 10, 2000 at 1.69, and its highest recent level on September 20, 2024 at 15.15. Gold Fields has 47 442 200 shares outstanding. |