AK Steel Holding Corporation
) provided its outlook for the first quarter of 2014. The company
expects to incur a loss in the range of 44 cents to 49 cents per
share in the first quarter mainly due to higher energy costs and
an unplanned outage at the company's Ashland Works blast
Due to the outage, AK Steel expects its steel shipments to
decline by 10%-12% sequentially to about 1,250,000 to 1,275,000
tons in the first quarter of 2014. However, AK Steel expects its
average selling price to rise by roughly 6% to about $1,095 from
$1,031 per ton in the fourth quarter of 2013 due to a richer
shipment mix of value-added products.
The cost of natural gas and electricity used to make steel is
also expected to increase by about $30 million from the preceding
quarter due to cold weather. The company will incur a charge of
about $47 million related to unplanned and planned outages. The
company also expects to incur a charge of $5.8 million for a
tentative settlement of pending litigation. However, the company
will record an income tax benefit at an effective tax rate of
approximately 29% for the first quarter of 2014.
AK Steel is slated to release its first quarter 2014 results
on the April 22, 2014 before the market opens. The Zacks
Consensus Estimate for the quarter is currently break-even
reflecting 100% growth year over year. We believe a revision to
the estimate is on the cards following the company's guidance of
a loss for the quarter.
The company currently holds a Zacks Rank #1 (Strong Buy).
Other companies in the steel and related industries with
favorable Zacks Rank are
Worthington Industries, Inc.
), each retaining a Zacks Rank #2 (Buy).
AK STEEL HLDG (AKS): Free Stock Analysis
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WORTHINGTON IND (WOR): Free Stock Analysis
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