AK Steel Holding Corporation (NYSE:AKS) released its earnings report for the three months ended June 30 this morning before the market opened in New York. The steel manufacturer showed a loss per share of 30 cents on revenue of $1.4 billion for the period. AK Steel Holding Corporation (NYSE:AKS) stock closed at $3.43 per share on Monday’s market.
Analysts following the company were expecting losses per share of 34 cents on revenue totaling $1.42 billion. In the same three months of 2012 AK Steel Holding Corporation (NYSE:SKA) managed to earn 10 cents per share on revenues of $1.5 billion. Since the start of 2013, shares in the company have lost more than 25% of their value.
AK Steel on the rocks
AK Steel Holding Corporation (NYSE:AKS) has not made a profit since 2011. The firm lost 57 cents per share in 2012, and analysts expect this year’s losses to come to 42 cents per share. The firm is not expected to turn back to profitability until 2014. Things have been going quite poorly for the steel industry in the United States.
The automotive and construction industries in the United States, which together make up a good proportion of steel demand, are recovering in 2013, but they’re not recovering fast enough to bring AK Steel Holding Corporation (NYSE:AKS) back into the black.Production of steel in China has increased exponentially in recent years, companies like AK Steel are having real trouble keeping up.
AK Steel also suffers from serious debt problems, making it one of the worst performing players in the steel industry. While other companies in the industry are also seeing losses in their value, AK Steel Holding Company (NYSE:AKS) is in more danger than many of its rivals. The twelve months ahead are going to be difficult for AK Steel, but it might give appreciable returns to investors willing to take a risk on the American Steel industry.