The video this transcript is based on appeared on December 19.
NEW YORK (TheStreet) -- Shares of AK Steel (AKS) are surging after reporting a better-than-expected fourth-quarter earnings outlook on Wednesday. The steelmaker surprised Wall Street by predicting fourth-quarter earnings per share in the range of 2 cents to 6 cents -- when analysts had expected the company to predict a loss of 3 cents a share. AK Steel is attributing its higher expectations to rising shipments and stronger demand, as well as its recovery from a blast furnace outage that affected its facility in Middletown, Ohio.
Shares of AK Steel are surging after reporting a better-than-expected fourth-quarter earnings outlook on Wednesday.
The steelmaker predicted fourth-quarter earnings per share in the range of 2 cents to 6 cents, excluding items -- beating analysts' expectations for a loss of 3 cents a share.
AK Steel said it expects shipments to rise 13% in the fourth quarter from the prior period -- totaling 1.4 million tons. The company said it's seen stronger demand in the fourth quarter compared to the third, especially in carbon sales to the spot market. Also boosting its outlook -- AK Steel's recovery from a blast furnace outage that affected its facility in Middletown, Ohio.
That outage will cost the company about a $5 million expense in the fourth quarter, on top of a $2 million non-cash income tax expense it expects to record for the period. However, AK Steel said it expects to incur lower production costs in the fourth quarter on declining prices of iron ore pellets.
At last check, shares were climbing about 8.4% to $6.85. In New York, I'm Brittany Umar for TheStreet.
Written by Brittany Umar in New York.
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