) again prevailed in the patent infringement litigation with
) as the United States District Court for the District of
Delaware has granted judgment in favor of the former. The summary
judgment was declared on Oct 25, 2013, and it affirmed that AK
Steel's ULTRALUME advanced high-strength steel product does not
infringe upon an ArcelorMittal patent.
Moreover, The Court confirmed that ArcelorMittal's patent was
invalid as it deliberately violated a statutory prohibition by
broadening a patent through reissuing it more than two years
since the patent was granted initially.
AK Steel's ULTRALUME steel helps automakers design lighter, more
fuel-efficient vehicles without sacrificing occupant safety. It
is used for hot-stamped, press-hardened applications where the
ultimate tensile strength is less than 1,500 miles per annum
(MPa). It has also been widely accepted by various automotive
original equipment manufacturers (OEMs).
AK Steel posted narrower loss in third-quarter 2013, reported on
Oct 22. The company recorded a net loss of $31.7 million or 23
cents a share in third-quarter, roughly 48% narrower than a loss
of $60.9 million or 55 cents a share a year-ago. The results
included charges related to the planned maintenance outage at its
Middletown Works blast furnace in Ohio and unplanned blast
Barring one-time items (tax charges related to a valuation
allowance for deferred tax assets), AK Steel's loss for the
quarter was 12 cents per share, narrower than the Zacks Consensus
Estimate of a loss of 24 cents.
Revenues fell 9% year over year to $1,331.3 million in the
reported quarter due to lower shipments. It missed the Zacks
Consensus Estimate of $1,365 million. Shipments fell around 9%
year over year to 1,242,400 tons due to the effects of unplanned
outage and seasonal reduction in shipments in the automotive
AK Steel, which maintains property damage and business
interruption insurance, expects the retained portion of its
losses to be between $20 million and $23 million before taxes.
While the remaining insurance recoveries are expected to be
recognized in the fourth quarter, the extent and timing of the
impact on the fourth quarter results will be decided depending on
the agreement with the insurance underwriters on the insured
portion of the losses.
AK Steel currently retains a Zacks Rank #3 (Hold).
Other companies in the steel industry with favorable Zacks
Companhia Siderurgica Nacional
Shiloh Industries Inc.
). Both carry a Zacks Rank #1 (Strong Buy).
AK STEEL HLDG (AKS): Free Stock Analysis
ARCELOR MITTAL (MT): Free Stock Analysis
SHILOH INDS INC (SHLO): Get Free Report
CIA SIDERUR-ADR (SID): Free Stock Analysis
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