AK Steel beats by $0.24, beats on revs; co reduced its exposure to the spot markets :
- Reports Q4 (Dec) earnings of $0.30 per share, excluding non-recurring items, $0.24 better than the Capital IQ Consensus of $0.06; revenues fell 22.8% year/year to $1.54 bln vs the $1.50 bln Capital IQ Consensus.
- "We achieved solid operational improvements during [Q4] as a direct result of focusing on the things that we can control...We intentionally reduced our exposure to the spot markets as part of our margin enhancement initiatives. These initiatives include investing resources where value is realized, reflecting our margin enhancement focus."
- Shipments were 1.656 mln tons, down from 2.01 mln tons last year. The decline was primarily a result of the co's decision to focus on sales of higher margin, value-added products and reduce sales to the carbon steel spot market.
- Average selling price for Q4 was $929 per ton, or 2% higher than Q3, primarily attributable to a greater proportion of higher value steels sold to the automotive market and improved selling prices for electrical steels.
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