Weak Q1 guidance from AK Steel includes 6% boost to selling price

AK Steel (AKS +3.4%) expects to report a loss of $0.44-$0.49 per share, brought on by a number of factors not expected to continue, among them higher energy costs thanks to the severe winter.

Shipments of 1.25M-1.275M tons is are about a 10-12% decrease from Q4. The decline is attributed to the blast furnace outage at Ashland Works.

The average selling price in Q1 of $1,095 is a 6% gain from Q4.

Barclays' take: "AKS is best-positioned among the steel producers to deliver significantly improved operating results as 2014 progresses."

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  • toolpusher
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    Comments (43) | Send Message
    Wonder what type of hedging program they have for natural gas to manage costs over the year so that weather does not cause of spike in energy prices. Is the 6% rise in the average selling price presumed to be because of product mix rather than an increase in the average selling price.
    21 Mar 2014, 01:40 PM Reply Like
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