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AK Steel expects Ohio facility outage to hurt results
June 24, 2013 / 7:57 PM / 4 years ago

AK Steel expects Ohio facility outage to hurt results

(Reuters) - AK Steel Corp (AKS.N) said its shipments and financial results would be hurt in the current and the next quarter due to an outage at its Ohio facility, sending the company’s shares down as much as 7.5 percent.

The steelmaker said it took its blast furnace offline after a mechanical failure on Saturday at the Middletown Works facility.

AK Steel said it did not have a specific estimate for total costs associated with the repair, but it expects uninsured losses of $10 million to $27.5 million.

Monday’s report on the outage comes a week after the company issued outlook for the current quarter, in which it anticipated a seven-day planned maintenance outage at the facility.

    The current failure would increase the outage time hurting production. There were no injuries and it was investigating the cause of the incident, it said.

    AK Steel said it expects to complete the repairs in July, but it could be pushed to later in the third quarter.

    The company said prior to the completion of repairs it will use its Butler Works electric arc furnace in Pennsylvania and its Ashland Works blast furnace in Kentucky.

    Shares of the West Chester, Ohio-based company were down 6 percent at $3.12 on the New York Stock Exchange on Monday after touching a low of $3.07.

    Reporting by Swetha Gopinath and Vijay Vishwas in Bangalore; Editing by Joyjeet Das

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