AK Steel Holding Corporation (NYSE:AKS) has declared a hike in the current spot market base prices of all carbon flat-rolled steel products by at least $60 per ton. The price increase is effective immediately with new orders.
AK Steel is a leading producer of flat-rolled carbon, stainless, electrical steel and tubular products. The company reported a net loss of $13.6 million or 8 cents per share in first-quarter 2016, much lower than a net loss of $306.3 million or $1.72 per share in the year-ago quarter.
However, the year-ago figure included a one-time charge of $256.3 million or $1.44 per share related to the company's investment in Magnetation LLC. The company’s loss per share for the reported quarter was narrower than the Zacks Consensus Estimate of a loss of 15 cents.
Compared to the year ago quarter, the company made significant headway in improving operations. Strategic decisions regarding exposure to the spot market, improving footprint and providing high-value products helped increase the adjusted EBITDA by 41% from the prior-year quarter.
The company generated sales worth $1.52 billion, down around 13% from the year-ago quarter. However, sales beat the Zacks Consensus Estimate of $1.48 billion by 2.6%.
AK Steel remains affected by global overcapacity in steel and cheap products from China. However, the company aims to provide competitive pricing even in the current economic environment. Price increases in the spot market for various steel products have been observed of late.
AK Steel currently has a Zacks Rank #3 (Hold).
Some better-ranked companies in the steel space include ArcelorMittal (NYSE:MT) , POSCO (NYSE:PKX) and Steel Dynamics Inc. (NASDAQ:STLD) . All three stocks carry a Zacks Rank #2 (Buy).
AK STEEL HLDG (AKS): Free Stock Analysis Report
POSCO-ADR (PKX): Free Stock Analysis Report
STEEL DYNAMICS (STLD): Free Stock Analysis Report
ARCELOR MITTAL (MT): Free Stock Analysis Report
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