Did Ford's 2014 Outlook Just Crush the Steel Industry's Spirit?http://www.fool.com/investing/general/2013/12/23/does-fords-2014-sales-call-spell-trouble-for-steel.aspx Reuben Brewer
December 23, 2013
Ford (NYSE: F) just updated its 2013 guidance and provided a somewhat dour outlook for 2014. The shares fell hard. If you own steel manufacturers you have to ask yourself if Ford's tough year is going to translate into a tough 12 months for the steel industry.
Worse for Ford shareholders, the automaker warned that next year will be a tough one with lots of new product launches pressuring results amid heightened industry competition. While that's bad news for Ford, it doesn't mean steel manufacturers like AK Steel (NYSE: AKS), U.S. Steel (NYSE: X), and Nucor (NYSE: NUE) need to worry.
Sales and Aluminum
That's not surprising since Europe and the United States are both mature markets. However, flat sales doesn't translate into more steel demand. Couple that with a shift toward lighter materials like aluminum, which Ford is planning to use in an updated version of its popular F-150 pickup, and U.S. steel producers could be looking at a tougher auto market.
A dimming bright spot