- AK Steel (AKS +7.2%) surges higher despite posting a wider than expected Q1 loss, as revenues rose 27% Y/Y to $1.75B.
- Shipments surged 39% Y/Y to 1.75M tons, helped by a boost from an acquisition and strong demand from the automotive sector, but fell 13% from Q4 shipments of ~2M tons; average selling prices fell 8.9% Y/Y.
- AKS took a $256M writedown related to its investment in iron ore pellet joint venture Magnetation LLC, citing near-term liquidity issues caused primarily by a recent significant decline in global iron ore pellet pricing.
- AKS had warned last month that it would post a Q1 loss, with a 14% Q/Q decline in shipments to ~1.73M tons, due to high levels of steel imports.