AK Steel Holding Corporation
) announced that it has reached a new 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 current agreement will expire 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
United Steelworkers (USW) Local 1865 union has members from
the state area of Kentucky, West Virginia and Ohio. The local
union represents roughly 850 members employed by AK Steel. The
union also represents members of Members Choice Credit Union, ESM
Caster Technology Division and Vesuvius.
AK Steel posted a narrower loss in second-quarter 2013 on Jul
23. The company recorded a net loss of $40.4 million or 30 cents
a share in the quarter, down roughly 94% from a loss of $724.2
million or $6.55 a share a year-ago. The year-ago quarter's
results were dragged down by income tax charge of $735.6 million
or $6.65 per share.
During the reported quarter, AK Steel took a charge of $21.6
million related to the planned maintenance outage at its
Middletown Works blast furnace in Ohio. Moreover, it incurred
$6.2 million associated with unplanned blast furnace outage in
the quarter. AK Steel also recorded an inventory-related credit
of $12.4 million in the reported quarter.
Barring one-time items (tax charges related to a valuation
allowance for deferred tax assets), AK Steel's loss for the
quarter was 15 cents per share, 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.
While AK Steel is poised to gain from healthy automotive
demand, we remain cautious about the weak steel pricing
environment and a challenging operating backdrop in overseas
AK Steel currently retains a Zacks Rank #3 (Hold).
Other companies in the steel industry with favorable Zacks
Nippon Steel & Sumitomo Metal Corporation
Kobe Steel Ltd.
). While Nippon Steel retains a Zacks Rank #1 (Strong Buy), Kobe
Steel and Ternium carry a Zacks Rank #2 (Buy).
AK STEEL HLDG (AKS): Free Stock Analysis
KOBE STEEL-ADR (KBSTY): Get Free Report
NIPPON STEEL CP (NSSMY): Get Free Report
TERNIUM SA-ADR (TX): Free Stock Analysis
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