NEW YORK (TheStreet) -- Shares of AK Steel Holding Corp,. (AKS) are down -2.71% to $10.40 after the company said its third quarter results will be weighed down by an unplanned furnace outage at a Kentucky plant and lower production levels, according tot the Wall Street Journal.
It said its Ashland Works blast furnace has returned to operation but continues to operate below normal levels. As a result, it plans to accelerate a planned outage to the fourth quarter from the first half of next year, which will hurt its results in the third and fourth quarters.
The company said the 28-day outage, starting in late October, is expected to bring down the company's third quarter results by about $25 million. Fourth quarter results will be affected by as much as $44 million due to repair and lost-production costs.
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AK Steel said it expects shipments to fall by about 3% in the third quarter from the second quarter to 1.35 million tons, and it expects to report a profit of 5 cents to 10 cents a share. Analysts polled by Thomson Reuters projected earnings of 26 cents a share.
The company said strong demand from the automotive industry partly offsets the production slowdown.
TheStreet Ratings team rates AK STEEL HOLDING CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation: