AK Steel Holding Corporation ( AKS ) announced that
the members of United Auto Workers (UAW), Local 3642, have ratified
a new three-year labor agreement. The agreement covers about 330
hourly production and maintenance employees at AK Steel's Coshocton
AK Steel stated that the new contract was ratified by vote well
before the expiration date, and will be effective from Mar 31,
2013, till Mar 31, 2016. AK Steel stated that the new
contract is in the best interest of the company and the Local 3462
In Jan 2013, AK Steel released its fourth-quarter 2012 results.
The company slipped to a wider loss in the fourth quarter, hit by
hefty pension, tax charges and weak pricing.
AK Steel posted a net loss of $230.4 million (or $1.89 a share) in
the quarter compared with a loss of $193.9 million (or $1.76 a
share) a year ago. It recorded a pension charge of $157.3 million
and a non-cash income tax charge of $96.4 million in the reported
quarter. Excluding these items, the company's loss was 30 cents a
share in the fourth quarter, which beat the Zacks Consensus
Estimate of a loss of 35 cents.
Revenues for AK Steel fell 6% year over year to $1,423.1 million
in the reported quarter on lower pricing, but beat the Zacks
Consensus Estimate of $1,416 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.
AK Steel is making good progress with its coal mine plan and
expects to begin mining activities in the first half of 2013. It is
also making significant progress with its iron ore pellet project
at Magnetation. Both these strategic investments are expected to
improve the company's cost structure and strengthen its position in
the years ahead.
AK Steel currently maintains a Zacks Rank #3 (Hold).
Other companies in the steel industry space worth considering
are Gibraltar Industries Inc. ( ROCK ), Shiloh
Industries Inc. ( SHLO ) and
Companhia Siderurgica Nacional ( SID ). While Gibraltar
and Shiloh hold a Zacks Rank #1 (Strong Buy) Companhia Siderurgica
carries a Zacks Rank #2 (Buy).AK STEEL HLDG (AKS): Free Stock Analysis ReportGIBRALTAR INDUS (ROCK): Free Stock Analysis
ReportSHILOH INDS INC (SHLO): Get Free ReportCIA SIDERUR-ADR (SID): Free Stock Analysis
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