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


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for AKS
iStock Market
4 Jul 15 11:56:24
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
4 Jul 15 11:53:25
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
4 Jul 15 11:50:28
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/ER6xnPeZFg
Breaking News
4 Jul 15 07:29:10
$AKS: AK Steel Holding Earns “Neutral” Rating from Macquarie (AKS): http://t.co/UqDx65iyHv
Breaking News
4 Jul 15 07:29:09
$AKS: AK Steel Holding Upgraded at Vetr Inc. (AKS): http://t.co/ws8H74a0I9
WKRB News
4 Jul 15 07:28:29
AK Steel Holding Upgraded at Vetr Inc. $AKS http://t.co/KtfbehUPZF
WKRB News
4 Jul 15 07:28:28
AK Steel Holding Earns “Neutral” Rating from Macquarie $AKS http://t.co/1CSpFqHt9q
Capital Market Labs
4 Jul 15 02:51:57
Interactive Chart -> http://t.co/wznfuyPnAh $AKS Revenue is Expanding. http://t.co/uQ4Cj9fEcT
SmallCaps
3 Jul 15 18:52:11
http://t.co/VXN22ItvTI < top 5 traders on @profitly all make many millions per year which is amazing! $SO $AKS $HALO $EPZM $EWQ
Ophir Gottlieb
3 Jul 15 18:44:19
$AKS Trade Card -> http://t.co/BclhEJLMgv http://t.co/j0zqk0xqPy
Lucretia
3 Jul 15 14:34:39
$AKS AK Steel Holding Corporation (NYSE:AKS) Analyst Rating Update http://t.co/JySHVpfDO0
Harry Walkman
3 Jul 15 12:07:24
$AKS Active Stocks News Update: AK Steel Holding Corporation, (NYSE:AKS), Ensco ... http://t.co/pOkTPtChSW
John Turner
3 Jul 15 10:45:46
$AKS AK Steel Holding Corporation (NYSE:AKS) Analyst Rating Update http://t.co/oQHgeq7xlO
Demond. ひ
3 Jul 15 10:15:09
Them Racks On My Mind, Them $aks On My Mind.
Stock Trade Alerts
3 Jul 15 10:06:12
How Sonar top NYSE looked @ today's open: $WLT $CRK $CLF $BTU $ACI $AKS $SHAK $FRO $ARO $SD | SH #TradeAlerts ➡ via http://t.co/LHfNLyERf1
Stock Horizon LLC
3 Jul 15 10:00:47
How Sonar top NYSE looked @ today's open: $WLT $CRK $CLF $BTU $ACI $AKS $SHAK $FRO $ARO $SD http://t.co/ZsJ8IywzRp
Mark Trader
3 Jul 15 09:53:08
100% non-compensated picks at http://t.co/R6BGOmTldH. That is awesome. Related: $RXII $NQ $AKS $ICLD $CTIC $VMEM $PMCB
brian sweetheart
3 Jul 15 09:36:20
Voted top trading group. http://t.co/5eVXN8RJLp Related: $NOK $ATML $AVP $BBRY $CRC $AKS $NQ
D Robertson
3 Jul 15 08:33:40
@DailyOkie @OphirGottlieb wow, I prefer $NUE but the whole sector looks awful, $X has almost the same chart as $AKS
Florence Eddington
3 Jul 15 08:08:44
AMZN Apricus Biosciences, Inc. 52Wk High http://t.co/Mhg2MlzUwh $AMZN $AKS $HND.TO $JNK #AMZN #stockmarket #tradeideas
wsnewspublishers
3 Jul 15 07:43:43
Active Stocks News Update: http://t.co/PHXirWmwzO $AKS $ESV $DVA
The Legacy News
3 Jul 15 07:42:37
AK Steel Holding Rating Reiterated by Macquarie $AKS http://t.co/T1HX6PLSxK
Breaking News Now
3 Jul 15 07:39:02
$AKS: AK Steel Holding Rating Reiterated by Macquarie (AKS): http://t.co/RAU5kUYjwP
danrocks
3 Jul 15 06:51:35
XLV Exeter Resource Corp. Change http://t.co/906TbYBGWr $XLV $HSD.TO $AKS $F #XLV #share #tradeideas
danrocks
3 Jul 15 06:51:11
WMT VelocityShares Daily Inverse VIX Short Term ETN News http://t.co/584BWqoXSU $WMT $AKS $PBR $VRY.V #WMT #nasdaq #stockmarket
Investors Hangout
3 Jul 15 06:51:11
XLU Consumer Discretionary Select Sector SPDR % Change http://t.co/Hsfh8I1FJg $XLU $FIT $AKS $AGG #XLU #stockmarket #share
Investors Hangout
3 Jul 15 06:51:10
XLV Consumer Discretionary Select Sector SPDR Shares http://t.co/kSzTaUKdJm $XLV $AKS $GPRO $HGU.TO #XLV #pennystocks #invest
Investors Hangout
3 Jul 15 06:49:41
VALE Petro-Victory Energy Corp. Investor Opinions http://t.co/7046IUiOwp $VALE $VID.V $AKS $EBAY #VALE #pennystocks #investing
SMPH #Sanders2016
3 Jul 15 06:47:44
PD.TO Pepsico, Inc. Last Trade http://t.co/deh63rVPDa $PD.TO $AEM.TO $BLTA $AKS #PD.TO #share #nasdaq http://t.co/mWqUw0JyJe
leahanne
3 Jul 15 06:47:05
PD.TO Pepsico, Inc. Last Trade http://t.co/rJwxySnA4n $PD.TO $AEM.TO $BLTA $AKS #PD.TO #share #nasdaq
PolgarStocks
3 Jul 15 06:46:06
QTMM Rock Creek Pharmaceuticals, Inc. Investor Opinions http://t.co/pTyqPWXLMQ $QTMM $AKS $MFLX $VLTC #QTMM #stocks #nasdaq
Stock Forums
3 Jul 15 06:45:14
OLED http://t.co/LvebqPr4I0 Inc. Ex-Div Date http://t.co/8V6KYDxuHg $OLED $SWKS $CYBR $AKS #OLED #stock #stockmarket
Jake13
3 Jul 15 06:44:06
MO MyECheck, Inc. Prev Close http://t.co/9gpPRQrGbT $MO $ARIA $AEM.TO $AKS #MO #invest #nasdaq
danrocks
3 Jul 15 06:43:39
MU Nordic American Tanker Shipping Ltd. Ask http://t.co/1OEZU88Ce2 $MU $PSMT $AKS $SLB #MU #finance #finance
PolgarStocks
3 Jul 15 06:43:36
NAT National Bank Of Greece Investor Opinions http://t.co/INR8guF4aV $NAT $AKS $SDS $SE #NAT #investing #nasdaq
Investors Hangout
3 Jul 15 06:42:11
JNUG Kinross Gold Corp. Volume http://t.co/xlPTBb8gHg $JNUG $DRT.TO $AKS $XLY #JNUG #finance #stockmarket
Ticker Report
3 Jul 15 06:41:51
AK Steel Holding Given Average Rating of “Hold” by Analysts $AKS http://t.co/iZqoflFYIe
nasdaqfan
3 Jul 15 06:39:32
GDXJ General Electric Co. Market Cap http://t.co/x6ODfjL47q $GDXJ $PVSP $AKS $KEY.TO #GDXJ #stock #stock
Jake13
3 Jul 15 06:39:10
GS Knight Therapeutics Inc. Dividend http://t.co/O3dH8tWfFB $GS $SAU.TO $F $AKS #GS #pennystocks #stockmarket
clayton
3 Jul 15 06:38:07
FNMA 21st Century Fox Inc. Stock Forum http://t.co/3mKhOIJzqf $FNMA $XIV $AKS $OWOO #FNMA #stocks #tradeideas
Investors Hangout
3 Jul 15 06:36:34
CXR.TO DuPont Co. Summary http://t.co/c8FW037dWZ $CXR.TO $XLK $AKS $UWTI #CXR.TO #tradeideas #tradeideas
Investors Hangout
3 Jul 15 06:36:19
DFS SPDR DJ Industrial Average ETF Trust Quotes http://t.co/eZ92VgtBTe $DFS $XIV $AKS $DBA #DFS #stock #finance
leahanne
3 Jul 15 06:36:13
DOL.TO Direxion Daily Gold Miners Bear 3x Shares Summary http://t.co/sF28MLvxCh $DOL.TO $EWG $AKS $BAM/A.TO #DOL.TO #stock…
Stock Forums
3 Jul 15 06:36:13
DNRG DIRTT Environmental Solutions Ltd. Stock Message Board http://t.co/7V21Nsav7J $DNRG $OLED $AKS $UPRO #DNRG #stocks #stockmarket
IH News Desk
3 Jul 15 06:36:12
CVE.TO Chevron Corp. Ask http://t.co/3UONksNk5r $CVE.TO $NUGT $AKS $HZNP #CVE.TO #investing #stock
danrocks
3 Jul 15 06:36:09
DOL.TO Direxion Daily Gold Miners Bear 3x Shares Summary http://t.co/YwKEXV4jQC $DOL.TO $EWG $AKS $BAM/A.TO #DOL.TO #stock…
Sleek Money
3 Jul 15 06:35:49
AK Steel Holding Given Average Rating of “Hold” by Analysts $AKS http://t.co/z4dCsErdhv
leahanne
3 Jul 15 06:34:36
CNC Canadian Natural Resources Ltd. 52Wk Low http://t.co/dtESDxLVBc $CNC $TIF $DUST $AKS #CNC #stocks #stockmarket
IH NASDAQ OMX
3 Jul 15 06:33:21
AKS Amgen, Inc. P/E Ratio http://t.co/Mq5pGuV1Aa $AKS $ERX $HGU.TO $EMA.TO #AKS #invest #tradeideas
jim50
3 Jul 15 06:33:20
BLTA Bank of Montreal Chart http://t.co/v8NiLX0rpb $BLTA $MDT $AKS $SWKS #BLTA #stockmarket #pennystocks
				
				
By  +Follow September 20, 2013 7:55AM
Share:

Comments

 

blog comments powered by Disqus

 

 Today's Must Reads

Microsegmentation: The Future of Cybersecurity?


How this Playboy Playmate Became a Better Stock Trader Than You

Long Term Rates Are On The Up…What’s Next?

The Modern Web: So Many Ways to Invest in Wireless Mobile Stocks

It's Time for the Rest of the Country to Legalize Weed

 

Do you expect a 10% correction by the end of 2015? in Equities.com Polls on LockerDome

About us

Equities.com is an advanced financial data portal and social network designed to connect self-directed investors with the world’s most innovative startup and small cap companies. Through our in-depth coverage of small cap markets, comprehensive research and stock valuation reports, state of the art issuer products, and world class events, Equities.com provides the social tools and insight that drive tomorrow’s investment relationships and opportunities.

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

Login or Register

LOG IN