AK Steel Holding Corporation
) expects to post loss in third-quarter 2013 as lower steel
pricing coupled with Middletown blast furnace outage is expected
to dent its bottom line in the quarter. The market reacted
negatively to the news and the company's shares skid as much 13%
in regular trading last Friday. The stock eventually closed at
$4.08 on Sep 20, reflecting a roughly 8% decline for the day.
AK Steel expects to incur a loss of 22 cents to 27 cents per
share in the third quarter based on lower steel prices on
year-over-year basis and reduced shipments. Shipments are
expected to be in the range of 1,240,000 to 1,260,000 tons in the
third quarter, a decline of 5%-6% from the sequentially prior
quarter and 1,363,500 tons a year ago. The reduction in shipments
is attributed to the unplanned outage at the company's Middletown
Works blast furnace as well as a seasonal reduction in shipments
to the automotive market.
The company forecasts a loss of about $12 million or 9 cents per
share in the third quarter on account of the blast furnace
outage. AK Steel also expects to recognize roughly $14 million in
insurance recoveries during the third quarter related to the
AK Steel, however, expects prices to increase slightly from the
second quarter to about $1,065 per ton due to a more favorable
mix of value-added products. However, that represents a fall from
$1,073 per ton registered a year ago.
AK Steel expects to record a non-cash income tax expense of
roughly $7 million, or 5 cents per share in the third quarter.
The company also expects to record about $5 million planned
maintenance outage costs, representing a sequential decline of
roughly $17 million.
AK Steel currently carries a Zacks Rank #3 (Hold).
Other companies in the steel industry with favorable Zacks
Nippon Steel & Sumitomo Metal Corp.
Companhia Siderurgica Nacional
Shiloh Industries Inc.
). All of them hold a Zacks Rank #1 (Strong Buy).
AK STEEL HLDG (AKS): Free Stock Analysis
NIPPON STEEL CP (NSSMY): Get Free Report
SHILOH INDS INC (SHLO): Get Free Report
CIA SIDERUR-ADR (SID): Free Stock Analysis
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