By Avi Salzman
U.S. Steel (X) and AK Steel (AKS) both reported losses for the fourth quarter on Tuesday, but said improving demand and higher steel prices will lead to a better 2011.
U.S. Steel reported a $1.22 loss, worse than the $1.12 loss analysts had been expecting. A.K. Steel reported a 49-cent loss, versus expectations for a 62-cent loss. Steel Dynamics (STLD) reported 7 cents of earnings per share on Monday, versus analysts’ expectations for 8 cents.
But the market overlooked the fourth quarter weakness, which was partially driven by falling steel prices and the economic slowdown. This year is already shaping up for a recovery in both prices and demand, the steel companies said, although raw materials prices also may rise and crimp profits.
“[W]e expect our average selling price to increase by approximately 8% quarter over quarter, or $80 per ton, due to higher contract and spot market prices and an improved product mix,” said AK Steel CFO Albert Ferrara on the company’s conference call.
U.S. Steel shares rose 5.3%; AK Steel shares rose 7.7%; and Steel Dynamics was up 1.3%.
Fonte: BARRON´S
US Steel
AK Steel
Steel Dynamics
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