Boston, MA 06/20/2014 (wallstreetpr) – Integrated steel producer, AK Steel Holding Corporation (NYSE:AKS), shares were sinking on Thursday trading session by 2.11% after the company provided an updated guidance for its second quarter estimates. The company expects to suffer a net loss of between $0.19 and $0.23, representing a slight improvement from its first quarter net loss.
Pricing For Q2 To Remain Flat
Excluding a probable-loss of $0.17 per diluted share, as a result, of Mark-to-market losses on derivatives, the company expects its loss to be between $0.02 and $0.06 per diluted share. AK Steel Holding Corporation (NYSE:AKS) has also announced that it has continued to experience improved market conditions in the steel industry but expects it to be negatively impacted by lingering harsh winter weather conditions, as well as the mark-to-market hedging losses.
Effects Of Looming Harsh Winter Conditions
AK Steel Holding Corporation (NYSE:AKS) expects its second quarter shipments to total 1,375,000 tons an increase of 9% from 1,262,100 reported in the first quarter. Improved shipments for the quarter still reflect adverse effects of the expected winter conditions and reduced production at the Ashland Works blast furnace. Selling price in the second quarter should remain flat compared to the first quarter. Ongoing changes in product mix in the company essentially means that despite an increase in spot prices for carbon steel products and other steel products, the overall selling price will remain flat in the quarter.
Ak Steel is set to incur higher costs in Q2 compared to the first quarter, as a result, of extreme cold conditions that may affect shipments. Higher transportation costs for iron ore pellets should result in additional costs that may reach highs of $15 million
AK Steel Agrees to a New Labor Deal
AK Steel Holding Corporation (NYSE:AKS) has announced the ratification of a new 42 month labor deal by members of the international association of Machines and Aerospace workers. The new deal is set to cover approximately 1,700 hourly production and maintenance employees at the company’s Middletown Works Plant in Ohio.
