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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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for AKS
Dave Neville
21 Apr 15 04:27:22
Buyers Accumulate Shares of AK Steel Holding, Up 5.4% : Found here: http://t.co/l9VjwDWX7v @ http://t.co/WBZOcQnpS5 4/20/15 $AKS
royfberger
21 Apr 15 00:06:05
Where is the $DOW headed? $HPQ $BABA $CLF $AKS $TSM $KGC $ORCL $SPY $QQQ http://t.co/8mR4s08jCl http://t.co/uUAZCO2933
Robert Walker
20 Apr 15 21:56:46
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…
Penny Stocks Blog
20 Apr 15 21:56:09
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
20 Apr 15 21:55:07
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/Uc8skh5ZpB
DayTrading Power
20 Apr 15 20:12:57
stalking the following stocks for my opening bell play: $GENE $NVGN $VGGL $AKS $ARIA $ACHN $ZIOP
Mark Trader
20 Apr 15 19:52:34
Check out http://t.co/U0VrKn1h21. They do alerts very differently than other sites. Related: $HL $FCEL $S $SD $AKS $KGC $ATHX $AUY
FasesdelaBolsa.net
20 Apr 15 19:48:54
Analyst Sees Steel-Dumping Case On Horizon, Launches Sector Coverage $AKS $CMC $MT http://t.co/UJfoxHq69Q vía @benzinga
StockEarnings.com
20 Apr 15 17:20:28
$AKS Since last ER, stock gained 17%. Will it continue aftr ER on 4/28 Before Open (Confirmed)? http://t.co/wY7OWRnTAf
danrocks
20 Apr 15 13:38:53
Right now AKS is number 220 for the largest percentage gain out of 250 stocks. $AKS AKS is up +8.37% in the la http://t.co/veEzxvFccY
danrocks
20 Apr 15 13:38:31
$AKS AKS Stock is number 220 for the largest percentage gain out of 250 stocks. $AKS AKS is up +8.37% in the last 5 http://t.co/O1WTmNvhTj
Capital Market Labs
20 Apr 15 13:14:47
$AKS Revenue is Expanding. http://t.co/egarsFRq0q http://t.co/cwJQ2tQWvS
royfberger
20 Apr 15 11:52:05
Where is the $DOW headed? $HPQ $BABA $CLF $AKS $TSM $KGC $ORCL $SPY $QQQ http://t.co/8mR4s08jCl http://t.co/JfX60Sg8zo
Peter Bardens
20 Apr 15 11:36:47
$AKS 3 Price Losers To Watch List: AK Steel Holding Corporation (NYSE:AKS), Sony ... http://t.co/CA5zjHbKJ3
Mark Trader
20 Apr 15 11:15:38
Cool trading site I just found. https://t.co/T2poBgnyFu $SGYP $KEG $FXCM $SNTA $BSBR $ONVO $XOMA $STEM $AKS
InvestorPlace
20 Apr 15 10:38:30
3 Steel Stocks Ready to Build Big Gains $X $AKS $SID http://t.co/2XNlxGl73f
leahanne
20 Apr 15 10:21:25
Volume Alert - AKS 5.00 AK Steel Holding Corp $AKS Hit a high today of 5.02 Closing the day 12:03 at 5.00 +0.2 http://t.co/XyHCqf4wB0
leahanne
20 Apr 15 10:21:03
$AKS Volume Alert - AKS Stock 5.00 AK Steel Holding Corp $AKS Hit a high today of 5.02 Closing the day 12:03 at 5.0 http://t.co/oeGiiyBVjT
The Cardiac Kid
20 Apr 15 10:08:20
136: $AKS - popped a little blue pill ;p: 136 http://t.co/SuBhIvBXkF
StockNewsWires
20 Apr 15 09:42:09
$AKS: AK Steel (AKS) Stock Rises Today Following World Steel ...: http://t.co/YxbLr910f1
TheStreet SpeedDesk
20 Apr 15 09:38:34
AK Steel $AKS Stock Rises Today Following World Steel Association's Comments http://t.co/o69T51RHWE
Trader Daily
20 Apr 15 09:35:35
AK Steel $AKS Stock Rises Today Following World Steel Association's Comments http://t.co/NkMp97AKxP
Andrew Meola
20 Apr 15 09:35:35
AK Steel $AKS Stock Rises Today Following World Steel Association's Comments http://t.co/i5NpNVCLoN
Leni
20 Apr 15 09:15:55
$AKS my little workhorse +44%
Stock Trade Alerts
20 Apr 15 09:14:06
5-min Candle Alert $AKS - AK STEEL HOLDINGS #daytrader #stocks ~ via #AlertTrade
stk_invst
20 Apr 15 09:04:34
Steel stocks $STLD $AKS $NUE $X doing well - nice intraday setups
PENNYSTOCKDON
20 Apr 15 08:30:52
$AKS 4.90 +2.94%.......More to come.......
Leni
20 Apr 15 07:49:03
$AKS looks great Core holding risk free 39.71%
Marc Hav
20 Apr 15 07:41:46
http://t.co/RMcEL7xe6c Bullish on $AKS Adding here
Alexander Morris
20 Apr 15 07:33:53
$AKS: At 1DyHIGH=4.89, hits:1, ch:+2.7%, 3phNewHi, 3:2Accel+, tf:1001111, medFlt:174M, HiPctSht[27%:4d], DyVol:1.8M:0.2x:0.2x
Marc Hav
20 Apr 15 06:08:00
Updates: $BBRY $BAC $ASNA $ARTX $AMAT $AKS $ACCO $AAPL http://t.co/Xt137P3F8o
Mark Trader
20 Apr 15 05:44:19
Cool trading site I just found. https://t.co/T2poBgnyFu $SGYP $KEG $FXCM $SNTA $BSBR $ONVO $XOMA $STEM $AKS
Peter Bardens
20 Apr 15 05:07:56
$AKS AK Steel Turnaround Shows Through Earnings http://t.co/kWVpClGYrw
Large Void Bot
20 Apr 15 04:00:41
Popular: $IBM, $MS, $MSFT, $YHOO, $SSYS, $CMG, $KO, $SPY, $FB, $XRX, $CNAT, $AKS, $JAKK, $SINA, $AMZN, $ALSN, $SBUX, $CTSH
royfberger
19 Apr 15 22:08:06
Where is the $DOW headed? $HPQ $BABA $CLF $AKS $TSM $KGC $ORCL $SPY $QQQ http://t.co/8mR4s08jCl http://t.co/kyWQh62yi8
Penny Stock Secret
19 Apr 15 21:36:12
$71,000 in ONE TRADE!! By Follwing Their Signals More Info Here http://t.co/NovWYe2RAx .. $AKP $AKR $AKS
Penny Stocks Blog
19 Apr 15 17:19:04
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…
Mark Trader
19 Apr 15 17:18:39
Cool trading site I just found. https://t.co/T2poBgnyFu $SGYP $KEG $FXCM $SNTA $BSBR $ONVO $XOMA $STEM $AKS
paul bratby
19 Apr 15 17:15:16
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/SfhV3QRBrn
Dave
19 Apr 15 13:17:25
New type of penny stock website may change the industry. http://t.co/hCqcXy27bY $FXCM $SNTA $BSBR $ONVO $XOMA $STEM $AKS
Mark Trader
19 Apr 15 11:19:46
Cool trading site I just found. https://t.co/T2poBgnyFu $SGYP $KEG $FXCM $SNTA $BSBR $ONVO $XOMA $STEM $AKS
royfberger
19 Apr 15 09:45:11
Where is the $DOW headed? $HPQ $BABA $CLF $AKS $TSM $KGC $ORCL $SPY $QQQ http://t.co/8mR4s08jCl http://t.co/PQaeJt1qus
Mark Trader
19 Apr 15 08:32:45
Cool trading site I just found. https://t.co/T2poBgnyFu $SGYP $KEG $FXCM $SNTA $BSBR $ONVO $XOMA $STEM $AKS
mike ring
19 Apr 15 08:27:22
RT @wallstcaptain: Cool trading site I just found. https://t.co/T2poBgnyFu $SGYP $KEG $FXCM $SNTA $BSBR $ONVO $XOMA $STEM $AKS
WLST.com
18 Apr 15 23:32:38
$AKS AK STEEL HOLDING CORP. (UPDATED 19APR2015) $AKS #AKS http://t.co/S6DviHMrfm http://t.co/CgHC2EIGzU http://t.co/fVZMKaVbJg
Marc Hav FX
18 Apr 15 23:32:30
$AKS AK STEEL HOLDING CORP. (UPDATED 19APR2015) http://t.co/41AiNbTYDa
Marc Hav
18 Apr 15 23:32:29
$AKS AK STEEL HOLDING CORP. (UPDATED 19APR2015) http://t.co/UFXy44xBZb
royfberger
18 Apr 15 20:54:06
Where is the $DOW headed? $HPQ $BABA $CLF $AKS $TSM $KGC $ORCL $SPY $QQQ http://t.co/8mR4s08jCl http://t.co/xDZTNLE7E4
Penny Stocks Blog
18 Apr 15 19:35:54
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
18 Apr 15 19:20:15
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/43LHU7BBKx
				
				
By  +Follow September 20, 2013 7:55AM
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