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

By  +Follow September 20, 2013 7:55AM
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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.


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Results for AKS
On Time Picks
23 Oct 14 17:56:12
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O T P i c k s . com
23 Oct 14 17:56:11
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OTPicks.com
23 Oct 14 17:56:05
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OTPicks.com
23 Oct 14 17:56:04
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OTPICKS.COM
23 Oct 14 17:56:01
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OTPicks.com
23 Oct 14 17:56:00
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OTPicks.com
23 Oct 14 17:55:58
http://t.co/rruxxRYVwc dDT : $AKS U.S. drops planned duties on specialized steel: dDT http://t.co/oiMGd9VfBn http://t.co/rruxxRYVwc
On Time Picks
23 Oct 14 17:55:57
http://t.co/gGib8CZttk dDT : $AKS U.S. drops planned duties on specialized steel: dDT http://t.co/T8eB8Ce1rW http://t.co/gGib8CZttk
equities.com
23 Oct 14 17:02:35
AK Steel Holding (AKS) Jumps 6.52% on October 23 $AKS http://t.co/nl2vNQ3XvY
Dave Neville
23 Oct 14 15:59:21
Options Radar: Infinera Corp., Under Armour Inc, and AK Steel Holding http://t.co/CK8OkA5dDj $AKS
Marc Hav FX
23 Oct 14 15:19:38
$AKS AK STEEL HOLDING CORP. (UPDATED 23OCT2014) http://t.co/Z26f7ilhEs
Marc Hav
23 Oct 14 15:19:37
$AKS AK STEEL HOLDING CORP. (UPDATED 23OCT2014) http://t.co/WASSGAAv36
Fahd El
23 Oct 14 14:35:02
$AKS should have added to the short on that lower high http://t.co/G5gdBETUHP
Fahd El
23 Oct 14 14:25:45
a lill bounce after the setback $AKS @CLF $CYTX $DAL $FB $LIVE $NLNK $PACB $RGLS $SPLK $TUBE $TWTR $VIMC $VSR http://t.co/TYmC1UwCxo
BigBoardScans
23 Oct 14 14:22:10
dDT : $AKS U.S. drops planned duties on specialized steel http://t.co/4G4gwnoOR7
Marshall Moore
23 Oct 14 13:53:48
RT @MarketCurrents: U.S. drops planned duties on specialized steel from China, other countries http://t.co/2RiAzvjv0h $AKS $ATI
Quantpost Basic Mats
23 Oct 14 13:52:50
$AKS News: "U.S. drops planned duties on specialized steel from China, other…" http://t.co/kqAqwxdAc2 Board view: https://t.co/HfHe2K4CfE
MarketCurrents
23 Oct 14 13:52:48
U.S. drops planned duties on specialized steel from China, other countries http://t.co/2RiAzvjv0h $AKS $ATI
@razielbolsa
23 Oct 14 13:14:01
there are plenty of opportunities building out there, just need to be patient $DUST $UGAZ $ERX $AKS $UVXY $STUDY
Stock Moo
23 Oct 14 12:55:20
$aks: U.S. drops planned duties on certain steel from China, elsewhere http://t.co/MGsK4SF4Tk
US_proptrader
23 Oct 14 12:06:11
$AKS $ERF $HL $IBIO $KNDI $NG $NGD $NPTN $PWE autocharts @ http://t.co/cLiki48C5r
Briefing.com
23 Oct 14 11:02:01
$AKS: AK Steel and Allegheny Tech (ATI) will appeal USITC decision in trade case; 'We are very disappointed by the... http://t.co/PMBAvk1xVO
US_proptrader
23 Oct 14 10:48:09
$AKS $EXXI $GPOR $IMGN $NLNK $PE $PGN $SN $TPLM autocharts @ http://t.co/hj7PGeTQk3
Day Trade Numbers
23 Oct 14 10:00:59
$AKS near support and resistance area between 7.18 and 7.21 http://t.co/BNAop8qZn4
Stock Moo
23 Oct 14 09:55:18
$aks: Electrical Steel Producers Will Appeal USITC Decision In Trade Case, Says Kelley Drye & Warren LLP http://t.co/zKty1K9tTc
@razielbolsa
23 Oct 14 09:24:23
$AKS making me happy, over 7 and more to come :)
ValueInvestorRN
23 Oct 14 09:24:16
Could not resist & sold all $AKS here at 7.26 from the $5.22 buy just last week. $X Still holding my other longer-term specs $IFON & $MUX
BacardiTrader
23 Oct 14 09:22:55
@razielbolsa @FernandoPM Parece que el cambio de $GDX a $AKS resulto ser una excelente opcion
@razielbolsa
23 Oct 14 09:22:31
$AKS BOOOM cc @bacarditrader @FernandoPM
Market Newswire
23 Oct 14 09:16:21
Options Radar: Infinera Corp., Under Armour Inc, and AK Steel Holding - http://t.co/Fpi3hDgtmG $AKS #stocks #stock #invest
E. Gordon Bishop
23 Oct 14 09:15:53
“@Vegastrader66: $AKS nice reversal and break over 7” Did well on this thanks to your weekend watch list video!
Vegastrader66
23 Oct 14 09:08:36
$AKS nice reversal and break over 7
NASDAQ
23 Oct 14 09:00:09
$AKS - Electrical Steel Producers Will Appeal USITC Decision In Trade Case, Says Kelley Drye & Warren LLP http://t.co/1zPmVFe3HY
Stocks News&Markets
23 Oct 14 09:00:07
$AKS - Electrical Steel Producers Will Appeal USITC Decision In Trade Case, Says Kelley Drye & Warren LLP http://t.co/YfbnLH2Cg7
coloskifreak
23 Oct 14 08:55:28
Sold my $AKS, definitely sold it a lot earlier than I should have.
StockMaul
23 Oct 14 08:44:18
@LMTentarelli Are you ready to get back into $AKS?
Dave Neville
23 Oct 14 08:43:15
$AKS up 5.19%
Notchu
23 Oct 14 08:35:56
$AKS going uphill..finally
Vegastrader66
23 Oct 14 08:12:09
$AKS testing 7 once again can it break this time?
US_proptrader
23 Oct 14 07:25:51
$AKS $ANGI $APT $BTU $ISNS $LAKE $PEIX $UCO $XCO autocharts @ http://t.co/hj7PGeTQk3
Jason Bond
23 Oct 14 06:08:10
http://t.co/4xHjNVYw2e ONLY 75 seats remain in this 40% discount $VSR $ZAZA $RGLS $IBIO $JAKK $CYTX $NOK $ALU $APT $WYY $JCP $AKS $S $HL
MonacoTrader
23 Oct 14 04:57:33
today's #stock #watchlist (updated): $RGLS, $BBLU, $LAD, $AVGO, $ZAZA, $CLF, $AKS, $GPRO
 Savino
23 Oct 14 04:04:20
Complete main watchlist : $BBLU, $CLF, $VII, $ISNS, $ZAZA, $AKS, $INFN
MonacoTrader
23 Oct 14 02:49:48
today's #stock #watchlist: $RGLS, $BBLU, $LAD, $AVGO, $ZAZA, $CLF, $AKS
 Savino
23 Oct 14 01:33:33
Cutting losses is important, but also to close a trade with a win , In order to start fresh on the next trade. $VII $INSN $ZAZA, $AKS $INFN
wininstocks2014
23 Oct 14 00:44:41
AKS 6.75 Stock Charts $AKS AK Steel Holding Corp. (NYSE) Last Updated: 10/23/2014 02:44:40 AKS Stock Chart - 1 http://t.co/MRVemruO9C
WKRB News
22 Oct 14 22:53:30
AK Steel Holding Sees Large Drop in Short Interest $AKS http://t.co/pouihvxSz9
iSENTIUM
22 Oct 14 14:03:24
iSENTIUM Post-Market Sentiment Report: Breaking alerts on $IBIO, $AKS, $YELP, $NOK http://t.co/05qd9lPjwW
Daily Contracts
22 Oct 14 12:51:03
Real-Time feed of company contracts, original agreements and executive updates from AK Steel Holding Corporation $AKS http://t.co/TxgZOD5uJc
 Savino
22 Oct 14 12:25:36
Done and covered $AKS, walking away with profits..
				
				
By  +Follow September 20, 2013 7:55AM
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