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AK Steel -21% as earnings call outlines weaker outlook, higher cost

Published 10/31/2017, 12:35 PM
© Reuters.  AK Steel -21% as earnings call outlines weaker outlook, higher cost
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  • AK Steel (AKS -20.7%) plunges as much as 21%, the most intraday since November 2012, to a 52-week low following disappointing Q3 earnings and its conference call where a gloomy Q4 outlook outlined weaker shipments and higher maintenance.
  • AKS forecasts marginally lower flat-rolled prices in Q4, sees auto shipments slightly lower Q/Q and expects lower shipments in infrastructure and manufacturing in the quarter.
  • AKS also sees planned Q4 outages totaling ~$50M vs. just $8M in Q3 but expects to recover higher costs with higher pricing in Q4.
  • On a potential equity raise, AKS says it will wait for the opportune time and continue to monitor the market.
  • Other steel names also are lower: X -5.2%, STLD -1.1%, CMC -1.1%, NUE -0.9%.
  • Source: Bloomberg First Word
  • Now read: Tenaris: Current Valuation Easily Reconciled


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