AK Steel warns of wider-than-expected loss; shares fall

Sept 19 Thu Sep 19, 2013 6:17pm EDT

Sept 19 (Reuters) - AK Steel Holding Corp estimated a wider-than-expected loss for the third quarter as production was hit by a mechanical failure at its Ohio facility, sending its shares down 7 percent in after-market trading.

The steelmaker said it expects to incur a loss of 22 cents to 27 cents per share. Analysts were expecting a loss of 11 cents per share, according to Thomson Reuters I/B/E/S.

The company also said it was likely to book a loss of $12 million, or 9 cents per share, due to the outage, after recovering a portion of the losses through insurance.

AK Steel's blast furnace at the Middletown Works facility in Ohio went offline in June, resulting in a delay of shipments to its carbon spot market customers.

The company expects to ship about 1.2 million tons to 1.3 million tons in the third quarter, 5 percent to 6 percent lower than in the second quarter. AK Steel shipped 1.3 million tons in the same quarter last year.

AK Steel's shares, which closed at $4.44 on the New York Stock Exchange on Thursday, were trading at $4.11 in trading after the bell.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.