AK Steel Holding Corporation
) has commended the U.S. Department of Energy's (DOE) final
ruling on efficiency standards for electrical distribution
transformers. As per the ruling, transformers in America are one
of the most energy-efficient in the world, and high-tech
electrical steels will continue to be a competitive material in
After an extensive review process, the DOE made the rule which
was published in the Federal Register a few days ago. The
standards set by the DOE will become effective from 2016. AK
Steel believes that the ruling is favorable for the U.S and also
consolidates its position to meet the requirements of its
electrical power distribution customers over the long term.
The standards are, however, not expected to have any major
affect on the overall competitiveness of AK Steel's
grain-oriented electrical steel (GOES) products. However, the new
standards may increase the market for GOES products with some
types of distribution transformers. AK Steel's GOES products are
some of the highest value-added specialty products and have
specific magnetic properties essential for producing highly
efficient and economical electrical transformers.
AK Steel is a world leader in the production of flat-rolled
carbon, stainless and electrical steel products, primarily for
automotive, infrastructure and manufacturing, construction and
electrical power generation and distribution markets.
AK Steel provided its outlook for the first quarter of 2013 in
Mar 2013. The company projected lower net loss of 9 cents to 13
cents in the quarter compared with a loss of 30 cents in the
fourth quarter of 2012 due to lower raw material costs.
AK Steel expects average selling price to rise about 5% to
$1,060 per ton in the first quarter from $1,011 in the fourth
quarter of 2012. Shipments are expected to be in the range of
1,275,000 to 1,300,000 tons in the quarter compared with
1,406,100 tons in the fourth quarter of 2012.
Another steel company
) recently released its first-quarter 2013 results. Nucor's
adjusted (excluding special items) earnings of 29 cents per share
for the first quarter of 2013 surpassed the Zacks Consensus
Estimate of 25 cents. The adjusted earnings exclude an inventory
related charge of $18 million or 3 cents a share.
Profit (as reported) for the quarter came in at $84.8 million
(or 26 cents a share), down 41.5% compared with $145.1 million or
46 cents per share reported a year ago. Revenues decreased 10.3%
year over year to $4,550 million, missing the Zacks Consensus
Estimate of $4,622 million.
Currently, AK Steel maintains a Zacks Rank #3 (Hold).
Other companies in the steel industry worth considering are
Gibraltar Industries Inc.
Shiloh Industries Inc.
). Both Gibraltar and Shiloh hold a Zacks Rank #1 (Strong Buy).
AK STEEL HLDG (AKS): Free Stock Analysis
NUCOR CORP (NUE): Free Stock Analysis Report
GIBRALTAR INDUS (ROCK): Free Stock Analysis
SHILOH INDS INC (SHLO): Get Free Report
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