The economic conditions worldwide have been very bad in the last couple of months, specially. Many companies are suffering as the result of the slow-moving degeneration of the current economic conditions. AK Steel Holding Corporation(NYSE:AKS) showed losses during the third quarter which have exceeded their expectations. During the third fiscal quarter this year, the losses have grown to amount to about $60.9 million, mostly because of the drop in the price of steel.
The results have shocked the company, and they have also managed to surpass the Wall Street Journal’s predictions. The losses have exceeded these predictions, and the brunt of the losses was immediately felt as the share-prices dropped very low during morning trading itself. The company, which is based in West Chester in Ohio, saw the result of the lowered third quarter earnings when 55 cents per share is the loss which the company has incurred this time, as compared to the 3 cents loss in 2011. The revenue of the company too, has fallen. It currently stands at $1.46 billion, after a 7.7 percent drop. The analysts had been rooting for 35 cents worth drop in share prices, and revenue of $1.48 billion.
The prices for steel and steel shipments have gone down drastically. The shipments have seen the flat-lining of 1.4 million tons, with the prices dropping down and getting lower. With the steel shipments being set at $1,073 per ton, the prices have definitely shaken up AK Steels. The prices are being affected badly because of the economic issues which are being felt on a global level right now. While the prices are going down, the companies are seeing the costs increase for getting the raw materials. The fourth quarter earnings are also not looking too good. Both the company and the analysts are expecting SK Steels to face a decrement. Analysts are pegging it at 11 cents per share. The company has not revealed the guidance for the fourth quarter yet.
AK Steels saw a drop in share prices to about $5.19 for each share, down about 5% in Tuesday’s session.