AK Steel Holding Corporation announced that members of the United Auto Workers (UAW) have ratified a new 46-month labor agreement. It will cover around 300 hourly production and maintenance employees at AK Steel’s Coshocton Works facility in Ohio.
The UAW officials have also notified AK Steel that the new contract was approved in voting held on Sep 20, 2019 at Coshocton Works. Moreover, the agreement is effective until Jul 31, 2023.
The new arrangement provides a flexible and competitive labor contract for the company and its employees at Coshocton Works.
Shares of AK Steel have gained 7.1% year to date against the industry’s 12.4% decline.
In July, AK Steel trimmed its profit forecast for 2019 factoring in the change in hot-rolled carbon spot market pricing. The company sees net income in the range of $41-$61 million or 13-20 cents per share for the year, down from its previous view of $76-$96 million or 24-30 cents.
Adjusted net income for 2019 is projected in the range of $118-$138 million or 37-44 cents, down from previous expectation of $153-$173 million or 48-54 cents.
AK Steel continues to expect planned maintenance outage expenses in the band of $70-$80 million for 2019, with a significant portion likely to be incurred in the fourth quarter.
Zacks Rank & Key Picks
AK Steel currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the basic materials space include Kinross Gold Corporation (KGC - Free Report) , Agnico Eagle Mines Limited (AEM - Free Report) and Arconic Inc , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kinross has an expected earnings growth rate of 160% for 2019. The company’s shares have surged 79.7% in the past year.
Agnico Eagle has projected earnings growth rate of 157.1% for the current year. The company’s shares have rallied 69.5% in a year’s time.
Arconic has an estimated earnings growth rate of 50% for the current year. Its shares have moved up 21.3% in the past year.
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