AK Steel projects 2Q loss
WEST CHESTER, Ohio -- AK Steel will likely post a larger-than-expected second-quarter loss, the company said Monday, citing the effects of a maintenance outage at one of its blast furnaces, on top of greater tax expenses.
Losses for the quarter are expected to be between 33 cents and 38 cents per share, according to the company. That is far worse than the 12 cent loss Wall Street had been expecting, according to FactSet.
The West Chester, Ohio, steelmaker plans to shut down its Middletown blast furnace for seven days for planned maintenance.
Overall maintenance outage costs, including Middletown, are expected to total about $21 million for the quarter, up from $1 million in the first quarter of this year, the company said.
AK Steel also expects to record non-cash income tax expenses of about $11 million, or 8 cents per share, for the second quarter. That compares with an income tax benefit of $2.8 million, or 2 cents per share, in the second quarter.
As a result, the company said it expects its tax expense to be about $14 million, or 10 cents per share, higher in the second quarter compared with the first quarter.