AK Steel Falls After Forecasting Wider Loss on Lower Shipments

AK Steel Holding Corp. (AKS), a U.S. producer of the metal, fell the most in 10 months after forecasting a wider-than-expected third quarter loss as an equipment outage reduced shipments.

AK Steel dropped 13 percent to $3.88 at 9:33 a.m. in New York, the most since Nov. 13. The shares have slumped 14 percent this year.

The company will lose 22 cents to 27 cents a share this quarter, the West Chester, Ohio-based company said in a statement after markets closed yesterday. That is a wider loss than the 16-cent loss estimated by Brian Yu, a San Francisco-based analyst at Citigroup Inc., he said in a note yesterday.

“Downside to expectations appears to be driven by pricing with the company unable to fully take advantage of rising spot prices because of a previously disclosed furnace outage at Middletown,” Yu said in the note.

This quarter’s shipments may fall as much as 9 percent to 1.2 million tons from 1.4 million a year earlier, according to AK Steel.

On June 22, the company took its blast furnace at Middletown, Ohio, offline after a mechanical failure. The furnace resumed operations on July 12.

To contact the reporter on this story: Sonja Elmquist in New York at selmquist1@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net

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