UK Markets closed

AK Steel Declares Labor Agreement Ratification at Coshocton

Zacks Equity Research

AK Steel Holding Corporation AKS 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, Agnico Eagle Mines Limited AEM and Arconic Inc ARNC, 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.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Kinross Gold Corporation (KGC) : Free Stock Analysis Report
 
Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report
 
Arconic Inc. (ARNC) : Free Stock Analysis Report
 
AK Steel Holding Corporation (AKS) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research