AK Steel Holding Corporation
) has announced its outlook for the second quarter of 2014. The
company expects to posts a net loss in the range of 19 cents to 23
cents for the quarter, which is a considerable improvement from the
loss of 63 cents per share reported in the first quarter of 2014.
AK Steel expects adjusted loss to be in the range of 2 cents to 6
cents per share. This excludes a loss of 17 cents per share that
reflects mark-to-market losses on derivatives, which are expected
to be about $23 million for the quarter.
AK Steel expects shipments of roughly 1,375,000 tons in
second-quarter 2014, marking a sequential increase of 9%. AK Steel
forecasts its average selling price for the second quarter to
remain flat compared with first-quarter 2014. The company's overall
average selling price has not changed significantly due to a change
in product mix.
Extreme weather conditions in the first quarter led to increased
level of ice coverage on the Great Lakes, which delayed the start
of the 2014 shipping season and impacted the movement of Canadian
iron ore. As a result, the company expects to incur higher costs in
the second quarter. Also, in the second quarter, supply of iron ore
to the steel industry was lesser than expected and hence the
company cut its production rate in order to be at par with the
AK Steel anticipates income tax expense of roughly $2 million for
the second quarter.
AK Steel currently has a Zacks Rank #3 (Hold).
Some other stocks worth considering in the steel space include
Universal Stainless & Alloy Products Inc.
Grupo Simec S.A.B. de C.V.
). While Universal Stainless has a Zacks Rank #1 (Strong Buy),
Grupo Simec and ThyssenKrupp hold a Zacks Rank #2 (Buy).
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