AK Steel and USW Sign Labor Deal
AK Steel Holding Corporation (AKS) announced that the members of the United Steelworkers (:USW) Local 169 have agreed upon a three-year labor contract. The deal covers roughly 280 hourly production and maintenance employees at the company's Mansfield (:OH) Works.
The new agreement will be effective Mar 31, 2014, when the current agreement expires, and remain in place through Mar 31, 2017.
AK Steel produces flat-rolled carbon, stainless and electrical steels, primarily for automotive, appliance, construction and electrical power generation and distribution markets.
Last month, AK Steel released the fourth-quarter 2013 results. The company posted net income of $35.2 million or 26 cents per share compared with a loss of $230.4 million or $1.89 per share in the year-ago quarter.
In the reported quarter, AK Steel recorded a non-cash income tax benefit of $22.7 million, or 17 cents per share, as a result of the allocation of income tax expense to other comprehensive income. The company also recorded an inventory-related credit of $4.3 million in the reported quarter.
Barring one-time items (non-cash income tax benefit), AK Steel’s earnings for the quarter came in at 9 cents per share, topping the Zacks Consensus Estimate of 5 cents.
Revenues rose 2.9% year over year to $1,464.8 million in the reported quarter due to higher shipments. It exceeded the Zacks Consensus Estimate of $1,427 million. Shipments increased about 1% year over year to 1,420,000 tons due to stronger demand in automotive sales, partly offset by reduced carbon shipments to the spot market.
AK Steel currently has a Zacks Rank #2 (Buy).
Other players in the steel and related industries worth considering include Olympic Steel Inc. (ZEUS), U.S. Steel Corporation (X) and Worthington Industries, Inc. (WOR). All of them carry the same Zacks Rank as AK Steel.
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