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AK Steel (AKS) Reaches Labor Deal at Mansfield Works
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AK Steel declared that the members of the United Steel Workers (“USW”) Local 169 have ratified a four-year labor agreement. The company noted that the contract was ratified in voting held on Mar 13 in Mansfield and will be in effect until Mar 31, 2021.
The deal covers roughly 300 hourly production and maintenance employees at the company's Mansfield Works facility in Ohio that makes a range of stainless steels used mainly in the automotive industry.
The agreement positions AK Steel well to address the future needs of its customers as it looks to boost sales of more value-added and innovative products.
AK Steel outperformed the Zacks categorized Steel-Producers industry over a year, supported by its forecast-topping earnings performance in the trailing four quarters. The company's shares gained around 101% during the period while the industry saw a gain of about 45.7%.
AK Steel topped earnings estimates in fourth-quarter 2016, helped by its cost-reduction actions. The company's adjusted earnings of 25 cents per share for the quarter topped the Zacks Consensus Estimate of 7 cents. However, sales fell roughly 8% year over year to $1,418.6 million on lower shipments and missed the Zacks Consensus Estimate of $1,434 million.
AK Steel expects shipments for first-quarter 2017 to be modestly higher on a sequential comparison basis as a seasonal pick-up in automotive shipments is expected to be partly offset by lower shipments to the electrical steel market.
The company also sees its average selling price to be flat in the first quarter compared with the fourth quarter. It expects a modest increase in selling prices on a year over year basis.
AK Steel remains committed to reduce cost amid a still challenging operating environment. Its cost reduction initiatives are lending support to its bottom line as witnessed in the fourth quarter. The company saw a roughly 9% decline in its total operating costs in the quarter. AK Steel is looking for cost saving opportunities in 2017 through a number of means including process improvement, headcount cuts, reduction in process time and procurement activities.
AK Steel should also benefit from the healthy momentum in the automotive market. The company is looking to continue to grow its core automotive business in 2017.
AK Steel is also laying importance on de-emphasizing commoditized products and launching new value-added products. The company, last year, launched Nexmet, an innovative product range of high-strength steel for use in automotive lightweighting applications. The products are expected to greatly benefit automotive manufacturers and reinstate the company’s focus on innovation and technology for product development.
U.S. Steel has an expected long-term growth rate of 8%.
Ternium has an expected long-term growth rate of roughly 18.4%.
Angang Steel has an expected earnings growth of 45.3% for the current year.
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AK Steel (AKS) Reaches Labor Deal at Mansfield Works
AK Steel declared that the members of the United Steel Workers (“USW”) Local 169 have ratified a four-year labor agreement. The company noted that the contract was ratified in voting held on Mar 13 in Mansfield and will be in effect until Mar 31, 2021.
The deal covers roughly 300 hourly production and maintenance employees at the company's Mansfield Works facility in Ohio that makes a range of stainless steels used mainly in the automotive industry.
The agreement positions AK Steel well to address the future needs of its customers as it looks to boost sales of more value-added and innovative products.
AK Steel outperformed the Zacks categorized Steel-Producers industry over a year, supported by its forecast-topping earnings performance in the trailing four quarters. The company's shares gained around 101% during the period while the industry saw a gain of about 45.7%.
AK Steel topped earnings estimates in fourth-quarter 2016, helped by its cost-reduction actions. The company's adjusted earnings of 25 cents per share for the quarter topped the Zacks Consensus Estimate of 7 cents. However, sales fell roughly 8% year over year to $1,418.6 million on lower shipments and missed the Zacks Consensus Estimate of $1,434 million.
AK Steel expects shipments for first-quarter 2017 to be modestly higher on a sequential comparison basis as a seasonal pick-up in automotive shipments is expected to be partly offset by lower shipments to the electrical steel market.
The company also sees its average selling price to be flat in the first quarter compared with the fourth quarter. It expects a modest increase in selling prices on a year over year basis.
AK Steel remains committed to reduce cost amid a still challenging operating environment. Its cost reduction initiatives are lending support to its bottom line as witnessed in the fourth quarter. The company saw a roughly 9% decline in its total operating costs in the quarter. AK Steel is looking for cost saving opportunities in 2017 through a number of means including process improvement, headcount cuts, reduction in process time and procurement activities.
AK Steel should also benefit from the healthy momentum in the automotive market. The company is looking to continue to grow its core automotive business in 2017.
AK Steel is also laying importance on de-emphasizing commoditized products and launching new value-added products. The company, last year, launched Nexmet, an innovative product range of high-strength steel for use in automotive lightweighting applications. The products are expected to greatly benefit automotive manufacturers and reinstate the company’s focus on innovation and technology for product development.
AK Steel is a Zacks Rank #3 (Hold).
AK Steel Holding Corporation Price and Consensus
AK Steel Holding Corporation Price and Consensus | AK Steel Holding Corporation Quote
Stocks to Consider
Better-ranked companies in the steel space include United States Steel Corporation (X - Free Report) , Ternium S.A. (TX - Free Report) and Angang Steel Company Limited , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
U.S. Steel has an expected long-term growth rate of 8%.
Ternium has an expected long-term growth rate of roughly 18.4%.
Angang Steel has an expected earnings growth of 45.3% for the current year.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>