AK Steel Holding Corporation
) has declared its outlook for the fourth quarter of 2013. The
company expects earnings per share in the range of 2 cents to 6
cents, barring the impact of a potential, non-cash income tax
benefit associated with pension and other gains.
AK Steel expects shipments to be about 1.4 million tons, an
increase of about 13% from the earlier quarter. This is based on
the company's recovery from the earlier announced unplanned
Middletown Works blast furnace outage. AK Steel also expects
stronger carbon sales in the fourth quarter compared with
third-quarter 2013. However, the company predicts prices will go
down 4% from the previous quarter due to reduced proportion of
value-added shipments to the spot market in the fourth quarter.
AK Steel projects maintenance outage costs of about $2 million
for the fourth quarter, down from $4.2 million in the prior
quarter. The company estimates expense related to the blast
furnace outage, that affected its facility in Middletown, Ohio,
to be about $5 million for the fourth quarter, net of insurance
The company's guidance for non-cash income tax expense is $2
million, or a penny per share.
AK Steel posted a net loss of $31.7 million or 23 cents a
share in third-quarter 2013, roughly 48% narrower than a loss of
$60.9 million or 55 cents per share reported a year-ago. Barring
one-time items (tax charges related to a valuation allowance for
deferred tax assets), AK Steel's loss for the quarter was 12
cents per share.
Revenues dropped 9% year over year to $1,331.3 million in the
quarter due to lower shipments.
AK Steel, which is among the prominent players in the steel
industry along with
United States Steel Corp
Companhia Siderurgica Nacional
), currently carries a Zacks Rank #3 (Hold).
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