logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

AK Steel Warns of Bigger Losses in Third Quarter, Shares Slide

By  +Follow September 20, 2013 7:55AM
Share:
Tickers Mentioned:

On September 9, AK Steel (AKS) said that it will be releasing the results from its third quarter before the markets open on October 22.  After the closing bell on Thursday, the producer of flat-rolled carbon, stainless and electrical steels provided outlook for the quarter, warning of a wider-than-expected loss.

West Chester, Ohio-based AK Steel said that it sees a net loss in the range of 22 cents to 27 cents, in part because of an unplanned outage at a Middletown, Ohio blast furnace that cost the company $12 million, or 9 cents per share, in profits, after recovering a portion of the losses through insurance.  Analysts were expected a loss of only 11 cents per share for the third quarter.

The company also said it anticipates more losses to be incurred and insurance recoveries in the fourth quarter related to the blast furnace outage.

In the second quarter, the steelmaker took a charge of $21.6 million related to a planned maintenance shutdown on the Middletown Works blast furnace and was also hit by a $6.2 million expense with the unplanned mechanical failure in June.  Costs associated with planned outages during the third quarter are expected to be $5 million, which is far better than the $28.5 million it claimed in Q3 2012.

The blast furnace is the part of the mill where iron ore, fuel and limestone are heated and reduced to make hot metal.  The Middletown plant wasn’t able to produce any new carbon flat-rolled steel during the shutdowns, affecting shipments to customers in carbon spot markets.  The company used existing inventory and used its Butler Works and Ashland Works factories to service customers until the Middletown furnace was restarted in mid-July.

For the third quarter, AK Steel expects shipments between 1.24 million and 1.26 million tons, compared to 1.32 million tones in the second quarter, a decrease of 5 percent to 6 percent.  Automobile factories shutting down for retooling during the quarter also partially account for the reduction in shipments.

Average selling prices are expected to rise mildly, from $1,061 per ton in the second quarter to $1,065 per ton in the third quarter.   In last year’s third quarter, the company shipped 1.36 million tons at an average price of $1,073 per ton.

The automobile industry has been a bright spot for AK Steel, but demand in other components, such as electrical steel, stainless steel and commodity carbon markets, have kept pressure on profits.

Shares of AKS started 2013 simply terrible, plunging from near $5 each to lows of $2.76 in April, but have managed to slowly rise since to pare the losses, despite the unplanned outage and associated costs.  Shares closed Thursday at $4.44, but have sunk back 10 percent to $4.00 in pre-market trading on Friday following Thursday’s guidance release.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Signup for our daily newsletter and get our best articles emailed right to you!

Results for AKS
DailyStockPicks
2 Mar 15 22:42:17
This $100M market cap #biotech #stock has gotten 3 orphan drug designations in 3 weeks $KIM $AKS $KBH investors read http://t.co/r6XCUw0ZTz
Penny Stocks Blog
2 Mar 15 22:08:01
RT @pbrat40plus: My Full Trade #Journal for my Shorts on $AKS - 7 trades in 21 days = 10.8% profit on my #trading account balance! http://t…
paul bratby
2 Mar 15 21:55:09
My Full Trade #Journal for my Shorts on $AKS - 7 trades in 21 days = 10.8% profit on my #trading account balance! http://t.co/IH11LIufsq
Buy Writes
2 Mar 15 21:17:22
AK Steel $AKS Strongly Placed on Automotive Momentum - Analyst Blog http://t.co/wTgtPhUfp6 via @YahooFinance
BULLDOG INVESTOR
2 Mar 15 18:07:53
Watch list for tom $AMD $AKS $CLNE $LAYN $OCN $OAS $AXPW $ACPW $NUGT $ZIOP
royfberger
2 Mar 15 17:32:05
Where is the $DOW headed? $HPQ $BABA $CLF $AKS $TSM $KGC $ORCL $SPY $QQQ http://t.co/8mR4s08jCl http://t.co/HOlUOS0ZPK
Greg David
2 Mar 15 14:45:52
http://t.co/RMvVXnJDpv does trade alerts differently than anyone else. Its super cool. $NOK $SD $BTU $FITX $ARRY $HEMP $AKS $ARCP $RAD $S
Mark Trader
2 Mar 15 12:26:09
http://t.co/U0VrKn1h21 has the most reliable picks in the market. The move fast and never fail. $KEY $SDRL $ARCP $AKS $BBRY $SUNE
Wall Street
2 Mar 15 12:12:13
http://t.co/iQWRYq6dIh....Top penny stocks, NYSE, and NASDAQ trades from the stock market today. +296% last week. $AAL $ANR $BSBR $AKS
BreakingStocksNews
2 Mar 15 11:32:01
$AKS: AK Steel (AKS) Strongly Placed on Automotive Momentum: http://t.co/huVztNBZti
Wall Street
2 Mar 15 11:00:02
http://t.co/iQWRYq6dIh will not help you lose weight...but it will help you make money trading. Enjoy! $MDLZ $HAL $GLW $AKS
Trader News Daily
2 Mar 15 10:54:30
Wow http://t.co/PeRPkYu8Uk just posted last weeks results. +429%. Crazy. They offer a free trial too. $S $KGC $ANR $AKS $SFUN $AUY
Wall Street
2 Mar 15 10:42:50
http://t.co/iQWRYq6dIh....Top penny stocks, NYSE, and NASDAQ trades from the stock market today. +296% last week. $MDLZ $HAL $GLW $AKS
The Legacy News
2 Mar 15 09:56:18
AK Steel Holding Stock Rating Reaffirmed by Zacks $AKS http://t.co/6kX1mPMQzJ
leahanne
2 Mar 15 09:27:21
Volume Alert - AKS 4.36 AK Steel Holding Corp $AKS Hit a high today of 4.40 Closing the day 10:30 at 4.36 -0.0 http://t.co/m1TyKriWdu
leahanne
2 Mar 15 09:26:59
$AKS Volume Alert - AKS Stock 4.36 AK Steel Holding Corp $AKS Hit a high today of 4.40 Closing the day 10:30 at 4.3 http://t.co/WfUBI8pFFW
The Legacy News
2 Mar 15 06:56:20
AK Steel Holding Given “B-” Credit Rating $AKS http://t.co/1HeeRmomzX
Mark Trader
2 Mar 15 06:48:05
I banked over 200% in gains during my 14-day trial with http://t.co/L2jCaE1M1d. Their 5 guru traders are amazing. $MDLZ $HAL $GLW $AKS
Stock Market Intel
2 Mar 15 06:43:41
Stocks under Bearish Claws: $GNW $IM $NMBL $AKS *Get Reports* http://t.co/n3eKuOGD0X
Trader News Daily
2 Mar 15 05:55:49
Wow http://t.co/PeRPkYu8Uk just posted last weeks results. +429%. Crazy. They offer a free trial too. $S $KGC $ANR $AKS $SFUN $AUY
James DiPlata
2 Mar 15 04:15:49
RT @Marc_Hav: Updates for today: $BBRY $AAPL $ACTG $AKS $MNKD $KNDI $BAC $GLUU $SNTA $XLNX $HOV $SUNE $JCP http://t.co/VDlPVK0wNU
royfberger
2 Mar 15 04:14:09
Where is the $DOW headed? $HPQ $BABA $CLF $AKS $TSM $KGC $ORCL $SPY $QQQ http://t.co/8mR4s08jCl http://t.co/mkJVur1l6M
Marc Hav
2 Mar 15 03:16:54
Updates for today: $BBRY $AAPL $ACTG $AKS $MNKD $KNDI $BAC $GLUU $SNTA $XLNX $HOV $SUNE $JCP http://t.co/VDlPVK0wNU
Wall Street
1 Mar 15 19:37:23
Why trade alone? Get real time trade alerts from 5 pro traders at http://t.co/iQWRYq6dIh $MDLZ $HAL $GLW $AKS
Penny Stock Secret
1 Mar 15 19:03:34
Yesterday We Made $89,000 In Just One Trade More Info Here http://t.co/NovWYe2RAx .. $AKP $AKR $AKS
Greg David
1 Mar 15 17:43:30
http://t.co/RMvVXns2xX does trade alerts differently than anyone else. Its super cool. $NOK $SD $BTU $FITX $ARRY $HEMP $AKS $ARCP $RAD $S
Penny Stocks Blog
1 Mar 15 17:24:57
RT @pbrat40plus: My Full Trade #Journal for my Shorts on $AKS - 7 trades in 21 days = 10.8% profit on my #trading account balance! http://t…
paul bratby
1 Mar 15 17:15:06
My Full Trade #Journal for my Shorts on $AKS - 7 trades in 21 days = 10.8% profit on my #trading account balance! http://t.co/Dj6NEow8dq
Trader News Daily
1 Mar 15 17:09:30
Wow http://t.co/PeRPkYLKiU just posted last weeks results. +429%. Crazy. They offer a free trial too. $S $KGC $ANR $AKS $SFUN $AUY
Trader News Daily
1 Mar 15 15:40:20
Wow http://t.co/PeRPkYu8Uk just posted last weeks results. +429%. Crazy. They offer a free trial too. $S $KGC $ANR $AKS $SFUN $AUY
royfberger
1 Mar 15 15:01:08
Where is the $DOW headed? $HPQ $BABA $CLF $AKS $TSM $KGC $ORCL $SPY $QQQ http://t.co/8mR4s08jCl http://t.co/8qR62XvcDy
Stock Rocket
1 Mar 15 13:48:30
Thanks to the 5 pro traders at http://t.co/5jbX6lWXsj for an amazing week! My win rate was 80%. So sweet. $DRYS $MJNA $AKS $ARNA
Mark Trader
1 Mar 15 12:46:14
I banked over 200% in gains during my 14-day trial with http://t.co/L2jCaE1M1d. Their 5 guru traders are amazing. $MDLZ $HAL $GLW $AKS
Trader News Daily
1 Mar 15 11:03:27
Wow http://t.co/PeRPkYu8Uk just posted last weeks results. +429%. Crazy. They offer a free trial too. $S $KGC $ANR $AKS $SFUN $AUY
Wall Street
1 Mar 15 10:21:44
http://t.co/iQWRYq6dIh will not help you lose weight...but it will help you make money trading. Enjoy! $MDLZ $HAL $GLW $AKS
WLST.com
1 Mar 15 10:05:09
$AKS AK STEEL HOLDING CORP. (UPDATED 1MAR2015) - MarcHavFX #wlst $AKS #AKS http://t.co/h3tR6R0gd8 http://t.co/87fiu61rqu
Marc Hav FX
1 Mar 15 10:04:26
$AKS AK STEEL HOLDING CORP. (UPDATED 1MAR2015) http://t.co/xUDmziEygG
Marc Hav
1 Mar 15 10:04:25
$AKS AK STEEL HOLDING CORP. (UPDATED 1MAR2015) http://t.co/cYdQng5G3D
iHangout
1 Mar 15 10:04:05
lookn4wins: Top Investment Alerts: AKS -0.90% Stock Charts $AKS AK Steel Holding http://t.co/aFLU2l0uMy
lookn4wins
1 Mar 15 09:52:16
AKS -0.90% Stock Charts $AKS AK Steel Holding Corp. (NYSE) Any opinions on AKS? Please reply to this post. Las http://t.co/gktMNCtDun
Penny Stocks Blog
1 Mar 15 06:13:49
RT @pbrat40plus: My Full Trade #Journal for my Shorts on $AKS - 7 trades in 21 days = 10.8% profit on my #trading account balance! http://t…
paul bratby
1 Mar 15 05:55:13
My Full Trade #Journal for my Shorts on $AKS - 7 trades in 21 days = 10.8% profit on my #trading account balance! http://t.co/VkxxZHNApT
royfberger
1 Mar 15 02:01:06
Where is the $DOW headed? $HPQ $BABA $CLF $AKS $TSM $KGC $ORCL $SPY $QQQ http://t.co/8mR4s08jCl http://t.co/yMCeJKpSgO
Wall Street
28 Feb 15 20:31:41
http://t.co/iQWRYq6dIh....Top penny stocks, NYSE, and NASDAQ trades from the stock market today. +296% last week. $MDLZ $HAL $GLW $AKS
Trader News Daily
28 Feb 15 20:30:48
Wow http://t.co/PeRPkYu8Uk just posted last weeks results. +429%. Crazy. They offer a free trial too. $S $KGC $ANR $AKS $SFUN $AUY
Mark Trader
28 Feb 15 20:24:04
http://t.co/U0VrKn1h21 has the most reliable picks in the market. The move fast and never fail. $KEY $SDRL $ARCP $AKS $BBRY $SUNE
Greg David
28 Feb 15 20:17:37
http://t.co/RMvVXnJDpv does trade alerts differently than anyone else. Its super cool. $NOK $SD $BTU $FITX $ARRY $HEMP $AKS $ARCP $RAD $S
Wall Street
28 Feb 15 20:00:38
Why trade alone? Get real time trade alerts from 5 pro traders at http://t.co/iQWRYq6dIh $AAL $ANR $BSBR $AKS
Wall Street
28 Feb 15 18:29:13
http://t.co/iQWRYq6dIh....Top penny stocks, NYSE, and NASDAQ trades from the stock market today. +296% last week. $AAL $ANR $BSBR $AKS
Mark Trader
28 Feb 15 17:31:07
http://t.co/U0VrKn1h21 has the most reliable picks in the market. The move fast and never fail. $KEY $SDRL $ARCP $AKS $BBRY $SUNE
				
				
By  +Follow September 20, 2013 7:55AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.