AK Steel Holding Corporation (AKS) has announced that it will raise the current spot market base price for its hot roll carbon steel to $660 per ton. The price hike is effective immediately with new orders.
AK Steel produces flat-rolled carbon, stainless and electrical steels, primarily for automotive, appliance, construction and electrical power generation and distribution markets.
AK Steel released its fourth-quarter 2013 results on Jan 28. The company posted net income of $35.2 million or 26 cents per share compared with a loss of $230.4 million or $1.89 per share in the year-ago quarter.
In the reported quarter, AK Steel recorded a non-cash income tax benefit of $22.7 million or 17 cents per share, as a result of the allocation of income tax expense to other comprehensive income. The company also recorded an inventory-related credit of $4.3 million in the reported quarter.
Barring one-time items (non-cash income tax benefit), AK Steel’s earnings for the quarter came in at 9 cents per share, topping the Zacks Consensus Estimate of 5 cents.
Revenues rose 2.9% year over year to $1,464.8 million in the reported quarter due to higher shipments. It exceeded the Zacks Consensus Estimate of $1,427 million. Shipments increased about 1% year over year to 1,420,000 tons due to stronger demand in automotive sales, partly offset by reduced carbon shipments to the spot market.
AK Steel currently holds a Zacks Rank #1 (Strong Buy).
Other companies in the steel and related industries with favorable Zacks Rank are NN Inc. (NNBR), Worthington Industries, Inc. (WOR) and Timken Co. (TKR), with all retaining a Zacks Rank #2 (Buy).
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