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Sector Snap: Steel makers slides on weak outlook

By Associated Press
July 22, 2008 | Comments (0)

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Shares of steel makers fell Tuesday after AK Steel Holding Corp. issued a downbeat outlook for the quarter ending in September.

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.

By midday, company shares had fallen $2.28, or 4.5 percent, to $48.75.

The rest of the sector also declined. The Standard & Poor's U.S. steel index was down 4.2 percent.

Among decliners were Commercial Metals Co., down $1.11, or 3.6 percent, to $29.98; United States Steel Corp., off $7.75, or 5.2 percent, to $142.40; and Carpenter Technology Corp., lower by $2.04, or 4.9 percent, to $39.91.

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