AK Steel Holding Corporation
) announced the ratification of a 4-year labor agreement by the
members of the United Auto Workers Local 3044 (UAW). The new
contract will cover roughly 195 hourly production employees at
the company's Rockport Works plant located on the Ohio River in
This new contract, which was ratified by UAW, will be
effective from Sep 30, 2013, on the expiry of the existing labor
agreement. The new contract will expire on Sep 30, 2017. AK Steel
stated that this new contract is beneficial for the Rockport
Works to serve the valued customer with superior quality and
On Aug 16, AK Steel signed a labor agreement with the members
of the United Steelworkers (USW) Local 1865 union. The agreement
will hold good for 18 months and will cover more than 800 hourly
production and maintenance steel operations employees at the
company's Ashland, Ky., works.
The agreement will succeed an existing one that expires on Sep
1. The new one will be effective from Sep 1, 2013, and will
expire on Mar 1, 2015. The agreement is in the best interests of
both AK Steel and Local 1865 members.
Over the past few months, we have seen metals and mining
companies entering into labor agreements. Specialty steel
Universal Stainless & Alloy Products Inc.
), metal alloys maker
Haynes International Inc.
) and mining company
Cliffs Natural Resources
) are the other companies which signed labor contracts since
March this year.
AK Steel incurred loss per share of 15 cents per share in the
second quarter of 2013, lower than the Zacks Consensus Estimate
of a loss of 35 cents.
Revenues fell 8.7% year over year to $1,404.5 million in the
reported quarter due to lower shipments to carbon spot and
electrical steel markets. It missed the Zacks Consensus Estimate
of $1,414 million.
AK Steel is expected to benefit from the strength in the
automotive market and higher shipment of carbon steel products to
automakers. The company is also investing to internally procure
about half of its iron ore and coal requirements. However, we
remain concerned about the challenging operating backdrop in
overseas markets, softness in the construction market and the
weak steel pricing environment. Moreover, maintenance outage
associated with the Ohio blast furnace will weigh on its third
AK Steel currently carries a Zacks Rank #3 (Hold).
AK STEEL HLDG (AKS): Free Stock Analysis
CLIFFS NATURAL (CLF): Free Stock Analysis
HAYNES INTL INC (HAYN): Free Stock Analysis
UNVL STAINLESS (USAP): Free Stock Analysis
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