AK Steel said that it expects earnings of 5 cents to 10 cents a share for the fourth quarter despite $31 million in costs associated with a planned blast furnace outage at its Ashland Works plant. Analysts surveyed by Thomson Reuters expect earnings of 4 cents a share for the quarter.
The steel company said it expects steel shipments to increase 37% to about 2 million tons in the fourth quarter from about 1.46 million tons in the third quarter. AK Steel said the expected increase is due to acquisitions and strong demand from the auto industry.
AK Steel also said that expects to benefit from lower iron ore, carbon scrap, and energy costs in the fourth quarter.
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:
"We rate AK STEEL HOLDING CORP (AKS) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally disappointing historical performance in the stock itself."