AK Steel Ups Hot Roll Carbon Steel Prices - Analyst Blog

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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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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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