AK Steel Raises Product Prices - Analyst Blog
01 9월 2011 - 6:30PM
Zacks
Effective immediately, AK
Steel Holding Corporation (AKS) raised the current spot
market base prices for all carbon flat-rolled steel products. For
hot rolled and cold rolled carbon steel products, base price has
been increased by $40 per ton and for coated carbon steel products
base price is raised by $50 per ton.
Recently, AK Steel posted its
second-quarter 2011 results, delivering an EPS of 30 cents compared
with 24 cents during the year-ago quarter. However, EPS was below
the Zacks Consensus Estimate of 50 cents per share.
Net sales, as reported by the
company, were $1,791.9 million on the shipments of 1,497,000 tons
versus $1,596.1 million and 1,449,400 tons in the prior-year
quarter. Net sales also missed the Zacks Estimate of $1,804
million. Average selling price for the quarter was $1,185 per ton,
up 8% from $1,101 per ton reported in the second quarter of
2010.
Value-added shipments including
stainless/electrical, Cold-rolled and Tubular product increased to
245.7, 318.1 and 32.8 tons, respectively, compared with 218.9,
284.7 and 32.6 tons, respectively, in the year-earlier quarter.
However, shipments of coated product came down to 631.3 tons from
685.2 tons in the year-ago quarter.
According to management, shipments
in the third quarter of fiscal 2011 are expected in the range of
1,400,000 and 1,450,000 tons. The company also anticipates its
average per-ton selling price to be about 1% lower and that of raw
material costs to be a bit higher compared with the second quarter.
The operating profit is expected to be approximately $15 per ton
for the third quarter of fiscal 2011.
AK Steel is uniquely positioned to
focus on products with high margins. Electrical steel continues to
be the company’s strongest product line, with demand recovering in
the U.S. and abroad, though at a slower rate. AK Steel is operating
its plants at above 80% capacity and is well positioned to serve
the end markets when the demand rebounds.
However, higher input costs,
particularly iron ore, is eroding margins of the company. Iron ore
pricing concerns have led to a negative outlook for steel
manufacturers. A K Steel currently retains a Zacks #3 Rank
(short-term Hold rating).
Ohio-based AK Steel Holding
Corporation is a leading producer of flat-rolled carbon, stainless,
electrical steel and tubular products. It operates 7 steel-making
and finishing plants in Ohio, Pennsylvania, Indiana and
Kentucky.
The basic raw materials required
for the steel manufacturing are iron ore, coal, coke, chrome,
nickel, silicon, manganese, zinc, limestone and carbon and
stainless steel scrap.
Natural gas, electricity and oxygen
are the sources of power for steel manufacturing operations. The
company competes with companies like Nucor Corporation
Common Stock (NUE), U.S. Steel Corp. (X)
and Steel Dynamics Inc. (STLD).
AK STEEL HLDG (AKS): Free Stock Analysis Report
NUCOR CORP (NUE): Free Stock Analysis Report
STEEL DYNAMICS (STLD): Free Stock Analysis Report
UTD STATES STL (X): Free Stock Analysis Report
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