AK Steel Blames China For Lower Outlook
AK Steel Holding Corp. (NYSE: AKS) shares fell more than 8 percent in Thursday's extended session after the company blamed "unfairly traded imports" for a weak outlook.
The steel maker changed hands at $3.85, down $0.35.
Chinese imports have caused lower-than-expected steel prices, which will result in a first-quarter net loss between $0.23 and $0.28 a share, AK said.
Wall Street expected earnings of $0.01 a share.
Automotive demand will remain strong and lower costs for scrap and iron ore will help results, but this will be "significantly outweighed" by selling-price declines, the company said.
Both Nucor Corporation (NYSE: NUE) and Steel Dynamics, Inc. (NASDAQ: STLD) made similar comments about imported steel in outlooks this week.
U.S. steelmakers plan to meet with the Congressional Steel Caucus later this month, according to The Wall Street Journal.
The congressional meeting may be a prelude to an anti-dumping complaint to the International Trade Commission, which could impose tariffs if the products are found to be unfairly subsidized.
See more from Benzinga
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
