AK Steel Holding Corp., whose plant is shown, Monday, Jan. 26, 2009, in Middletown, Ohio, reported a quarterly loss that totaled $430.6 million. (AP Photo/Al Behrman)
Chrysler, GM cuts will hurt AK Steel
AK Steel cuts its second-quarter outlook
Updated: Tuesday, 05 May 2009, 11:16 AM EDT
Published : Tuesday, 05 May 2009, 10:54 AM EDT
WEST CHESTER, Ohio (AP) - Production cuts by General Motors Corp. and Chrysler LLC will leave AK Steel Holding Corp. with a larger-than-expected second-quarter loss, the steel maker said Tuesday.
The car makers' production cuts will lower AK Steel's second-quarter steel shipments to about 725,000 from 800,000 tons, resulting in an operating loss of $75 million to $80 million.
AK Steel had previously estimated a second-quarter loss of $50 million. Analysts had expected a loss of $39.2 million, according to a survey by Thomson Reuters.
In the first quarter, the company reported an operating loss of $99.9 million.
The company also said it expects its average per-ton selling price for steel to fall 3 percent to 4 percent in the second-quarter from the first quarter.
In pre-market electronic trading, shares remained flat at $15.66.
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