This excerpt taken from the AKS 8-K filed Jul 24, 2007.
AK Steel Reports Net Income of $109.9 Million for the Second Quarter of 2007
Company Reports Record $109 Operating Profit Per Ton
MIDDLETOWN, OH, July 24, 2007 AK Steel (NYSE: AKS) today reported net income of $109.9 million, or $0.98 per diluted share of common stock, for the second quarter of 2007, compared to net income of $29.1 million, or $0.26 per diluted share, for the second quarter of 2006.
Net sales in the second quarter of 2007 were a record $1,869.5 million on shipments of 1,711,400 tons, also a record, compared to sales of $1,497.3 million on shipments of 1,599,100 tons for the year-ago quarter. The company said its average selling price for the second quarter of 2007 was a record of $1,092 per ton, a 17% increase over the $936 per-ton mark set in the second quarter of 2006, and about 1% higher than the $1,078 per-ton level in the first quarter of 2007.
Second-quarter 2007 operating profit was $187.4 million, or a record $109 per ton, compared to $63.0 million, or $39 per ton, in the second quarter of 2006. The year-over-year operating profit improvement was primarily the result of higher shipments, higher spot market and contract selling prices, lower total employment costs corporate-wide, and lower operating and maintenance costs at the companys Middletown (OH) Works.
Operating profit for the second quarter was impacted by a pre-tax, non-cash pension curtailment charge of $24.7 million related to a new labor agreement at the companys Middletown Works, along with higher raw material costs and associated higher LIFO charges. Excluding the pension curtailment charge, operating profit in the 2007 second quarter was $212.1 million, or $124 per ton.
AK Steels excellent second quarter results reflect strong shipment levels and prices for our products, an outstanding operating performance, and our unrelenting efforts to reduce costs, said James L. Wainscott, chairman, president and CEO of AK Steel. Consistent with our approach for 2007, we continue to put the pedal to the metal as we accelerate toward realizing AK Steels potential for our shareholders.
The following schedule reflects the reconciliation of the Non-GAAP quarterly financial measures discussed within this news release: