Sector Snap: Steel makers slides on 3Q outlook

Shares of steel makers fell Tuesday after AK Steel Holding Corp. said its third-quarter shipments will decline from second-quarter levels and raw material and energy costs are due to increase in the period.

While the West Chester, Ohio-based company reported second-quarter earnings that beat Wall Street expectations, the company also said it expects third-quarter shipments of 1.55 million tons, down from 1.74 million in the second quarter, due to seasonally lower automotive shipments and a planned outage at the company's Middletown Works mill.

AK Steel also expects higher raw material and energy costs.

Despite those challenges, AK Steel expects to generate operating profit in a range between $170 and $175 per ton, which would represent a record performance," according to a company news release.

In afternoon trading, company shares fell $2.48, or 4.9 percent, to $48.58.

The rest of the sector also declined. The Standard & Poor's U.S. steel index slipped 3.1 percent.

Among decliners were Commercial Metals Co., down $1.11, or 3.6 percent, to $29.98; United States Steel Corp., off $6.2, or 4.1 percent, to $144.18; and Carpenter Technology Corp., lower by $2.59, or 6.2 percent, to $39.91.