* Company sees 3rd-quarter loss in range 60 cts-65 cts/share
* Expects average selling price 7 percent lower than 2nd
* Stock down over 7 percent
Sept 14 AK Steel on Friday forecast a
third-quarter net loss significantly larger than what Wall
Street estimated, partly due to lower prices, sending its shares
lower as other U.S. steelmakers' stock rose on optimism over the
The Ohio-based steelmaker said it sees a net loss of between
60 cents and 65 cents per share - three times greater than Wall
Street analysts' current expectation for a loss of 21 cents per
share, according to Thomson Reuters I/B/E/S.
AK Steel shares fell 7.1 percent to $5.98 in afternoon
trading on the New York Stock Exchange as stocks rallied a day
after the Federal Reserve took aggressive steps to stimulate the
Analyst David Gagliano of Barclays revised his third-quarter
estimate for AK Steel to a loss of 36 cents per share from 29
cents per share, but he maintained his estimates for the fourth
quarter and the full year, with a bullish view.
"AK Steel's results will improve significantly in the coming
quarters, due to the combination of relatively stable finished
steel prices and more significant raw material cost relief,"
Gagliano wrote in a research note.
The decline in AK Steel's share price was in contrast to
other steel companies. Europe-based ArcelorMittal
, the world's largest steelmaker, gained 6.1 percent to
$17.39 on the NYSE, and Steel Dynamics was 4.3 percent
higher at $12.93 on the Nasdaq.
Analysts said the sector likely would benefit from positive
signs of an improving economy, such as China's $150 billion
build-out of infrastructure and the Fed's move to boost the U.S.
AK Steel said it expects shipments in the third quarter to
rise about 3 percent over the second quarter, but its average
per-ton selling price will be down 7 percent.
It said the outlook was partly based on lower spot market
prices for carbon steel products, due primarily to a decline in
global economic and business conditions.
AK Steel also cited reduced raw material surcharges, due to
lower raw material costs, and a lower percentage of value-added
products in the total mix of shipments, due principally to
market seasonality resulting from factors such as summer plant
closures in the automotive industry.
The company said it expects its third-quarter results to
reflect about $29 million in planned major maintenance outage
expenses, compared with about $1 million in the second quarter.