Higher input costs, particularly iron ore, are eroding margins of the company. Iron ore pricing concerns have led to a negative outlook for steel manufacturers. Revenues and average selling prices are lower, as the U.S. and global markets are in a gradual recovery. The ongoing slowdown has marred prospects in the construction and housing sectors.
AK Steel has forecasted a challenging fourth quarter of 2010 with lower shipments and prices, as well as higher costs. The company estimates operating losses of about $80 per ton. The weak third quarter results coupled with a weaker fourth quarter guidance have led to a significant downtrend in the Zacks Consensus Estimate for the current quarter and full year 2010.
AK STEEL HLDG (AKS): Free Stock Analysis Report
Zacks Investment Research
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