AK Steel Business Model Calls for Less Spot More Value Added

AK Steel has intentionally been reducing their exposure to the low-priced spot markets and instead they are looking at the higher end value added products going to automotive and other contract customers.

AK Steel results exceeded analyst expectations for fourth quarter. The company reported a net loss of $147.1 million for the fourth quarter of 2015, compared to net income of $13.5 million for Q4 2014 and net income of $6.7 million Q3 2015. After adjusting for charges related to pension, AFSG Holdings, and the idling of Ashland Works blast furnace and steelmaking operations, adjusted net income was $53.8 million. Adjusted EBITDA of $168.1 million, or $101 per ton, was the best company performance since 2008.