AK Steel Ups Hot Roll Carbon Steel Prices - Analyst Blog


AK Steel Holding Corporation ( AKS ) has announced that it will raise the current spot market base price for its hot roll carbon steel to $660 per ton. The price hike is effective immediately with new orders.

AK Steel produces flat-rolled carbon, stainless and electrical steels, primarily for automotive, appliance, construction and electrical power generation and distribution markets.

AK Steel released its fourth-quarter 2013 results on Jan 28. The company posted net income of $35.2 million or 26 cents per share compared with a loss of $230.4 million or $1.89 per share in the year-ago quarter.

In the reported quarter, AK Steel recorded a non-cash income tax benefit of $22.7 million or 17 cents per share, as a result of the allocation of income tax expense to other comprehensive income. The company also recorded an inventory-related credit of $4.3 million in the reported quarter.

Barring one-time items (non-cash income tax benefit), AK Steel's earnings for the quarter came in at 9 cents per share, topping the Zacks Consensus Estimate of 5 cents.

Revenues rose 2.9% year over year to $1,464.8 million in the reported quarter due to higher shipments. It exceeded the Zacks Consensus Estimate of $1,427 million. Shipments increased about 1% year over year to 1,420,000 tons due to stronger demand in automotive sales, partly offset by reduced carbon shipments to the spot market.

AK Steel currently holds a Zacks Rank #1 (Strong Buy).

Other companies in the steel and related industries with favorable Zacks Rank are NN Inc. ( NNBR ), Worthington Industries, Inc. ( WOR ) and Timken Co. ( TKR ), with all retaining a Zacks Rank #2 (Buy).

AK STEEL HLDG (AKS): Free Stock Analysis Report

NN INC (NNBR): Free Stock Analysis Report

TIMKEN CO (TKR): Free Stock Analysis Report

WORTHINGTON IND (WOR): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: AKS , NNBR , TKR , WOR



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