Steel Mills
AK Steel Guides to Higher Flat Rolled Steel Demand
Written by Sandy Williams
December 19, 2013
AK Steel announced its fourth quarter earnings guidance and expects to realize net income of $0.01 to $0.06 per diluted share.
Steel shipments are expected to increase by 13 percent to 1,400,000 tons in the fourth quarter compared to 1,242,400 tons in the third quarter. The company says demand has increased, especially in carbon sales to the spot market. The average selling price in Q4 is expected to decrease 4 percent to $1,071 per ton due to a lower percentage of value-added shipments in the spot market. The higher shipping volume is expected to more than offset the lower average selling price.
Productions costs will be lower in the fourth quarter due to lower cost for iron ore pellets. Costs related to planned maintenance outages will be $2 million compared to 4.2 million incurred in third quarter.
The unplanned blast furnace outage at Middletown Works will be partially covered by property damage and business interruption insurance but will result in an expense of approximately $5 million in the fourth quarter.
Tax expenses will be lower in the fourth compared to the previous quarter. AK Steel expects a non-cash income tax expense of approximately $2 million or $0.01 per diluted share.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
U.S. Steel sues Algoma over iron pellet shipments
U.S. Steel is suing Algoma over the Canadian flat-rolled producer's rejection of iron pellet shipments, arguing it has breached its contract.
August US mill shipments slip but still higher than last year
The American Iron and Steel Institute reported a decline in the monthly shipments of US mills from July to August.
TransPod, Algoma, Supreme Steel linkup anchors Canadian steel in high-speed transit build
The three Canadian companies have announced a strategic partnership to support the development of an ultra-high-speed transit line from Edmonton to Calgary.
Metallus, USW agree to tentative four-year labor deal
Metallus and the United Steelworkers (USW) have agreed to a tentative four-year labor contract.
ArcelorMittal Dofasco resumes cokemaking after emergency maintenance
The Canadian steelmaker reported on Sept. 30 that “urgent maintenance” was needed in its coke plant off-gas systems. The work required coke oven gas from the No. 2 coke plant to be flared for most of that week.