AK Steel Holding Corp. (NYSE: AKS) announced this morning that it expects to post a second-quarter loss in the range of $0.33 to $0.38 a share. The consensus estimate from Thomson Reuters called for a net loss of $0.08.
What is driving the company's stock price this morning, though, is its statement that spot prices for its carbon steel products have improved recently and that AK Steel has been able to raise its prices. The company expects to continue to benefit from the price increases, although it did not predict further increases.
Second-quarter earnings will be hit by a $21 million expenditure for scheduled maintenance, and a noncash income tax expense of $11 million. The second quarter also saw the average selling price of the company's steel fall about 1%, from an average of $1,062 per ton in the first quarter to $1,055 per ton. AK Steel now believes that price drop has turned around.
After a small drop in the premarket, shares of AK Steel are up 1.7%, at $3.63 in a 52-week range of $2.76 to $6.73.
Filed under: 24/7 Wall St. Wire, Commodities & Metals, Earnings Warning Tagged: AKS