AK Steel Holding Corporation (AKS) declared that it will raise the current spot market base prices for all carbon flat-rolled steel products by $30 per ton. The price hike is effective immediately with new orders.
Last month, AK Steel released its third-quarter 2013 results. The company posted a net loss of $31.7 million or 23 cents a share, roughly 48% narrower than the loss of $60.9 million or 55 cents a year ago.
Barring one-time items (tax charges related to a valuation allowance for deferred tax assets), AK Steel’s loss for the quarter was 12 cents per share, narrower than the Zacks Consensus Estimate of a loss of 24 cents.
Revenues fell 9% year over year to $1,331.3 million in the reported quarter due to lower shipments. It missed the Zacks Consensus Estimate of $1,365 million. Shipments declined around 9% year over year to 1,242,400 tons due to the effects of unplanned outage and seasonal reduction in shipments in the automotive market.
AK Steel benefited from improved prices in the carbon spot market. However, it experienced lowered electrical steel spot market pricing during the quarter. The effect of declined pricing was reflected particularly in International sales.
AK Steel plans to announce detailed fourth-quarter guidance in Dec 2013. However, the company said that it expects better performance in the fourth quarter compared to the third.
AK Steel currently holds a Zacks Rank #3 (Hold).
Other companies in the steel industry with favorable Zacks Rank include Companhia Siderurgica Nacional (SID), Shiloh Industries Inc. (SHLO) and Unites States Steel Corp. (X). While both Companhia Siderurgica and Shiloh Industries hold a Zacks Rank #1 (Strong Buy), United States Steel carries a Zacks Rank #2 (Buy).
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