NEW YORK -(Dow Jones)- Bear Stearns lowered its
rating of AK Steel Holding Corp. to neutral from buy,
after an analyst conference call Wednesday led Bear
Sterns to believe expectations for the company's future
earnings have been "drastically" reduced.
of AK Steel (AKS, news, msgs) dropped $1.563, or
13%, to settle at $10.813 on Thursday.
Stearns said despite the company's move to the highest
value-added range of the steel market, improving global steel
markets will hurt AK Steel in the future.
Stearns said AK Steel is locked into contract prices set
in late 1998 and 1999, when raw material prices were
There is now greater demand for raw
materials, which has sent prices rising, Bear Stearns said.
AK Steel estimates that raw material costs will run
$100 million higher in 2000 than in 1999.
Stearns also said that the company's costs at the former
Armco Mansfield, an operation that produced 400 series
stainless for automotive exhaust systems, were estimated to
be $17 million higher in the fourth quarter than
they would have been with the unit's normal labor
force in place. AK Steel was forced to operate with
temporary and salaried workers because of a dispute with
the United Steel Workers of America.
that the president of the uswa local in ashland
is a lying sack of shit. does this really surprise
anyone. now don't everyone try to jump down my throat at
once. see the post that ironic steel left earlier today
from the business wire.
dskers and noscab, would
like to try and put a spin on this, we're
"Business Wire": "...The original complaint was
filed March 2, 1998 by Gail Riggs, president of the
local union representing hourly employees of AK Steel's
Ashland, Kentucky coke operations. Riggs filed the
complaint after union employees were disciplined for
violating plant safety rules.
The employees claimed
the company disciplined them in retaliation for
reporting alleged safety violations by the company, which
led to a Kentucky Labor Cabinet citation and a
hearing. In findings of fact from the hearing, the hearing
officer determined that AK Steel has a comprehensive
safety program that instructs employees to follow
specific general safety procedures that were applicable in
the incident. The hearing officer also stated as fact
that the employees did not follow the requirements of
the applicable safety procedures in this case.
At the conclusion of the hearing, held in December
of 1998, the Review Commission's hearing officer
concluded that the testimony of union president Gail Riggs
was not credible and that no evidence was presented
to support the OSH investigator's claim of
discriminatory discipline. The Secretary of Labor then
petitioned the Review Commission for appeal of the hearing
officer's dismissal of the citation.
Commission concluded, in its decision dated February 2,
2000, that AK Steel acted appropriately with regard to
the discipline of the employees and dismissed the
So, perhaps it IS possible for
someone under oath to be "less than correct."
How much of AKS "Stainless" business is the low
margin 400 series "muffler grades" versus the 300 series
Nickel grades. I think your research will find AKS very
dependant on muffler grades that don't have the "markup"
value that 300 series has. You should listen to SSB
chi, he knows what he's talking about. This stock is
going nowhere until there is definite proof of improved
earnings. Dead money until 2001 at least.
that only comes once in a lifetime-chrmn screwed
up in his statements and the drop is an opportunity
to buy into the best operating gross margins in the
industry! buy on lows and trade on move ups---thats what
the brokers do- they love this kind of
situation-start a stampeed out and start a stampeed back in and
make money!!! remember it always looks darkest before
Not bad for a bunch of unintelligent steelworkers
huh? On the day of the contract deadline, the company
gave everybody the afternoon off so they could go to
the union meeting. While we were there, they
proceeded to start bringing their hired security goons in
the plant and putting up gates with barbed-wire. They
were that sure we were going to strike. They played
their hand and lost. We wanted to work while we
negotiated a fair contract. Since they had already spent the
investors money bringing Securcorp(www.securcorp.com) in,
they proceeded to lock us out.
experts/analysts on this board are either AK management or are
being paid by AK management, just like the
analyst(Waldo Best) that toured the plant last week prior to
the stock going to hell. This is just my opinion, no
proof of it.
I feel for the investors out
there that are bankrolling Wardrop's personal vendetta
against the union, and not getting much in return. You'd
think that somebody would be screaming for his