(By Balachander) AK Steel Holding Corp. (NYSE: AKS) forecast a loss per share between 67 cents and 72 cents for the fourth quarter.
The West Chester, Ohio-based maker of flat-rolled carbon steels now expects shipments of roughly 1.375 million to 1.400 million tons in the fourth quarter, versus 1.36 million tons in the prior quarter.
AK Steel expects that its average selling price will reduce by roughly 5 percent from its average selling price of $1,073 per ton for the third quarter.
The company cited the reduction in average selling price to a fall in average spot market prices for carbon steel products on a sequential basis and lower raw material surcharges due to decrease in raw material costs.
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In addition, AK Steel said it has seen a rise in pricing for carbon flat rolled steel products.
The company cautioned, however that the majority of the benefits associated with these price increases will not be realized until the first quarter of 2013, principally because a significant portion of the carbon steel products it will ship in the fourth quarter was sold prior to the price increases and because of a lag between when a price increase occurs and the time it takes for purchased product to work its way through inventory to being shipped.
Meanwhile, AK Steel's net loss projection includes a non-cash income tax charge of around $35.0 million or 33 cents per share, as a result of an expected change in a tax valuation allowance on its deferred tax assets.
The stock, which has been trading in the 52-week range of $4.44 to $10.33, closed at $5.46 on Monday.