AK Steel Shares Slump As Analyst Downgrades Stock

PITTSBURGH (AP) — Shares of AK Steel Holding Corp. plunged Friday as an analyst downgraded the stock to "Neutral" from "Buy," saying the steel maker's share price already reflected gains from a possible demand revival.

AK Steel, like other steel companies, has been hit hard by the recession, which has erased orders from key customers in the automotive, construction and industrial equipment industries. The West Chester, Ohio-based company derives a significant amount of its revenue from the beleaguered Detroit automakers, including Chrysler LLC and General Motors Corp.

Some analysts have predicted an eventual upturn in steel demand as the inventories of distributors and manufacturers run low and government economic stimulus spending kicks in. ...