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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.

Results for AKS
Daily Contracts
24 Apr 14 07:09:02
Real-Time feed of company contracts, original agreements and executive updates from AK Steel Holding Corporation $AKS http://t.co/DwfQV9snDg
US_proptrader
24 Apr 14 06:53:26
$AKS $JNUG $NUGT $PENN $UAL autocharts @ http://t.co/cLiki3Rz3r
Steph Seguin
24 Apr 14 02:39:41
“@RaginCajun: A Few Setups For Thursday | Momentum Trading with RaginCajun http://t.co/wHybgWeFVM $C $RIG $AKS $MCP $QCOR”
4-traders.com
24 Apr 14 01:35:03
AK Steel : Reports Financial Results for First Quarter Of 2014 http://t.co/Mz9vLxM96k $AKS
RC
23 Apr 14 22:40:02
A Few Setups For Thursday | Momentum Trading with RaginCajun http://t.co/NyPzaMvBi5 $C $RIG $AKS $MCP $QCOR
Alfredo Gilham
23 Apr 14 20:30:06
$AKS AK Steel's Coshocton Works Recognized For Outstanding Safety Performance http://t.co/u1X1vO6HyH
Stock Signaling
23 Apr 14 19:31:05
25 Stocks To Watch: http://t.co/3gvJLENZtD : $SPWR $ASGN $FXEN $WWD $AGN $TE $AOS $MDSO $ETFC $BIG $AZN $CSL $AKS $SANM $CREE #stockmarket
Alfredo Gilham
23 Apr 14 17:48:17
$AKS AK Steel Is Well Positioned Despite Dramatic First Quarter http://t.co/EJV0CVUHuc
Informer
23 Apr 14 16:55:37
$AKS: AK Steel Is Well Positioned Despite Dramatic First Quarter http://t.co/o1UKfFTrm2
$Dirty SanKhez$™
23 Apr 14 16:16:13
$aks Fifth Ave.. http://t.co/gbMk0Pagi8
MarketNews
23 Apr 14 16:10:13
$AKS - AK Steel Is Well Positioned Despite Dramatic First Quarter -> http://t.co/53kK9sWcpM #stock #stocks #stockaction
Stock Signaling
23 Apr 14 14:31:17
Upgraded Stocks Trading in a New Range: $RSPP $FXEN $GHL $GLF $WWD $TE $AKS $MDSO $AGN $SANM $SPWR $VRTX $ARII $CSL $MOD #nyse #stockmarket
Fastener News Desk
23 Apr 14 13:00:11
Why AK Steel (AKS) Stock Is Up Today @TheStreet http://t.co/1KnZ5Eqnvt #steel #AKSteel #stocks $AKS
Alfredo Gilham
23 Apr 14 12:46:38
$AKS 1 Steel Stock to Buy, 1 to Avoid http://t.co/Lkf0KdPLxR
Foxchart
23 Apr 14 12:46:30
$AKS Looking strong after finding support at $6.93. Technical 76% chance up. http://t.co/8H8LEAWdhp
Guru Trader Tweet
23 Apr 14 12:46:29
ISpy $AKS #Steel 7.05 +7% 7M Q1 +PricesUp, $MU #Micron #Tech 26.23 19M NH, $CF.ca #Canaccord 8.89 +7% YH #IssuerBids http://t.co/UdbjNBI1Qv
GavinGreenberg
23 Apr 14 12:45:21
$AKS: AK Steels Coshocton Works Recognized For Outstanding Safety Performanc... http://t.co/WDS1eJRJ1X
WallStreetConsensus
23 Apr 14 12:40:57
Upgrades 4/23: $AKS, $AEM, $ATHN, $ILMN, $LL, $AOS, $VRX, $SPWR, $COG, $VSI, $HAFC, $AGN, $EFX, $TE http://t.co/DaLmP5sPc9
BEAST
23 Apr 14 12:32:36
$x $aks decent moves
4-traders.com
23 Apr 14 12:30:09
AK Steel : Coshocton Works Recognized For Outstanding Safety Performance http://t.co/vefHlq8oWL $AKS
US_proptrader
23 Apr 14 12:13:34
$AKS $EGO $JNUG $LXK $MYGN $NUGT $PDCE $TEDU $ZION autocharts @ http://t.co/kn4mViMgNq
The Cardiac Kid
23 Apr 14 12:12:43
Azy: IM thinking of going in $AKS... what do: Azy http://t.co/QCocrEeIfo
MarketNews
23 Apr 14 12:10:07
$AKS - AK Steels Coshocton Works Recognized For Outstanding Safety Performanc... -> http://t.co/BtGwCJDR1Z #stock #stocks #stockaction
Linda
23 Apr 14 12:09:10
$AKS long swing +9.4% hod 7.13
Fastener Stocks
23 Apr 14 12:03:56
Why AK Steel (AKS) Stock Is Up Today @TheStreet http://t.co/y76VMEI42k #steel #AKSteel #stocks $AKS
Buy Writes
23 Apr 14 11:58:27
Nice move in $AKS. I was a bit worried by the decline after yesterday's ER. I liked that revs increased even with the outages.
4-traders.com
23 Apr 14 11:50:02
AK Steel : Coshocton Works Recognized For Outstanding Safety Performance http://t.co/IeVpM6vUoK $AKS
VisualStock Resource
23 Apr 14 11:47:04
$AKS - AK Steel's Coshocton Works Recognized For Outstanding Safety Performance http://t.co/KR1ddXX2ZQ
Henry R.
23 Apr 14 11:31:22
RT @StockSignaling: Upgraded Stocks Trading in a New Range: $RSPP $FXEN $GHL $GLF $WWD $TE $AKS $MDSO $AGN $SANM $SPWR $VRTX $ARII $CSL $MO…
Stock Signaling
23 Apr 14 11:31:19
Upgraded Stocks Trading in a New Range: $RSPP $FXEN $GHL $GLF $WWD $TE $AKS $MDSO $AGN $SANM $SPWR $VRTX $ARII $CSL $MOD #trader #trading
US_proptrader
23 Apr 14 11:23:32
$AKS $GWPH $IDRA $IRWD $JNUG $MDRX $MYGN $NUGT autocharts @ http://t.co/cLiki3Rz3r
JCPAfonso
23 Apr 14 11:21:40
$AKS $X $STLD Metal sector back to show up
Alfredo Gilham
23 Apr 14 10:50:09
$AKS AK Steel Posts Wider Loss in Q1 http://t.co/V4uX6VXNxl
Media Sentiment
23 Apr 14 10:47:39
$AKS received a new alert. Find out why at http://t.co/WHJp8eTsSr #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 502
Media Sentiment
23 Apr 14 10:46:50
$AKS received a new alert. Find out why at http://t.co/WHJp8eTsSr #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 495
Buy Writes
23 Apr 14 10:41:59
RT @MarketCurrents: AK Steel Holding beats by $0.03, misses on revenue http://t.co/yabJXaVPbU #premarket $AKS
Stock Signaling
23 Apr 14 10:31:16
Top Upgrades: $GHL $GLF $WWD $PLD $SANM $HAFC $AMX $YNDX $AKS $VRX $COG $MDSO $AGN $SPWR $VRTX http://t.co/3gvJLENZtD #stock #investors #spy
WallStreet
23 Apr 14 10:30:34
$AKS - AK Steel Holding Corporation (NYSE:AKS): Sailing up or down? - http://t.co/QRMNYSWkWO
ExplosivePicks
23 Apr 14 10:28:52
$AKS moving 7% just today! http://t.co/gB9vDSrdkl
Donald van Deventer
23 Apr 14 10:21:39
RT @KamakuraCo: AK Steel 1 Year Default Probability 1.01%, Up 0.55% Today $AKS #Bonds http://t.co/0gY5KIXhew via @salphatrending
randall millard
23 Apr 14 10:20:41
RT @RaginCajun: Runner Screen | Momentum Trading with RaginCajun http://t.co/rcN78HTQaC $SD, $AKS, $EXXI, $REXX, $EPZM
MarketNews
23 Apr 14 10:10:09
$AKS - 1 Steel Stock to Buy, 1 to Avoid -> http://t.co/joOLAk2wm5 #stock #stocks #stockaction
RC
23 Apr 14 10:02:12
Runner Screen | Momentum Trading with RaginCajun http://t.co/rcN78HTQaC $SD, $AKS, $EXXI, $REXX, $EPZM
US_proptrader
23 Apr 14 09:44:34
$AKS $ALJ $CYTK $IDRA $LIVE $NQ $NUGT $PDCE $TEDU autocharts @ http://t.co/kn4mViMgNq
DK1
23 Apr 14 09:38:38
$AKS long May 7 calls @ .36
Alfredo Gilham
23 Apr 14 09:09:06
$AKS Why AK Steel (AKS) Stock Is Up Today http://t.co/lZRP3CzNvT
SNN Team
23 Apr 14 09:08:10
$AKS - Why AK Steel (AKS) Stock Is Up Today -> http://t.co/0LokO0Bt9x #stock #stocks #stockaction
Kamakura Corporation
23 Apr 14 09:06:18
AK Steel 1 Year Default Probability 1.01%, Up 0.55% Today $AKS #Bonds http://t.co/0gY5KIXhew via @salphatrending
Stock Hawkz
23 Apr 14 08:35:09
$AKS grind mode Longs rejoice...
MGoodlife21
23 Apr 14 08:23:44
$AKS has a clear runway now. I see potential for $1.50+ in earnings next year
				
				
By  +Follow September 20, 2013 7:55AM
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