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.
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 firstname.lastname@example.org
To contact the editor responsible for this story: Simon Casey at email@example.com