AK Steel's Net Income Hit 10-Year Peak in 2018

SEATTLE (Scrap Monster): West Chester, Ohio-based AK Steel reported financial results for the fourth quarter and full year 2018. The company reported significant progress during the year, recording the highest income and adjusted EBITDA in a decade.

According to company press release, it reported net income of $33.5 million for the fourth quarter of 2018. This compares with a net loss of $80.4 million in Q4 ’17. Excluding the pension settlement charge of $14.5 million, the adjusted net income totaled $48.0 million in Q4 2018, when compared with adjusted net loss of $24.1 million during the same quarter a year before. The Q4 net sales surged higher by 12% year-on-year to total $1,677.1 million. Also, the adjusted EBITDA at $135.5 million in Q4 ’18, recorded an increase by 101% from the fourth quarter of 2017.

AK Steel reported full year net income of $186.0 million and adjusted net income of $200.5 million in 2018. The adjusted EBITDA of $563.4 million was the highest since 2008. The yearly sales surged higher by 12% over the previous year to total $6,818.2 million in 2018. The higher raw material costs were offset by higher steel prices and increased steel shipments during the year.

As per current estimates, AK Steel expects net income to range between $160 million and $180 million in 2019. The adjusted EBITDA is likely to be in the range of $515 million to $535 million. Also, the company plans to make capital investments of around $170 million- $190 million during the current year.