| AK Steel Stock Rises In First Quarter 2009 |
| Tuesday, April 21, 2009 12:31:07 PM - Middletown Ohio |
 Ever since they got an upgrade from a prominent business firm, the stock price of AK Steel has taken a turn for the better, rising in recent stocks. The global securities and investment banking firm Goldman Sachs has taken it's stocks held in the Middletown-based Steel giant and raised them from a "neutral" stand point, meaning it is okay to either buy or sell AK stock, to a "buy" stand point, meaning it is more profitable to invest in AK stock with a price target of $12.
According to Goldman Sachs, AK will have a better flexibility to benefit from lower iron ore prices and adjust costs as opposed to AK's rival, U.S. steel which is the largest United States steel company in the nation. Goldman Sachs also commented that the electrical steel business of AK could move to the upside which could release earnings that would be a positive catalyst for AK stock.
The first quarter results came in for AK this morning. The total net sales for the company totaled $922.2 million on shipments of 778,800 tons of steel. This is compared to the first quarter results of 2008 which totaled $1,791.4 million on shipments of 1,578,400 tons of steel. AK sold it's product at an average price of $1,184 per ton in the first quarter of 2009. This is a 4% increase to the first quarter price of $1,135 of 2008 but also a 13% decrease in the 2008 fourth quarter price of $1,359. AK did, however, experience a loss in operating for 2009's first quarter. They went from $169.7 million, or $108 per ton in 2008 to $99.9 million, or %128 per ton. But the end of the first quarter for AK did end with a strong position in cash and credit. The company $676.6 million of availability under its credit facility and $462.0 million of cash which totaled out over $1.1 billion in total liquidity.
In a statement from Chairman, President, and CEO of AK Steel James L. Wainscott, "Despite the worst market conditions in decades, AK Steel employees responded with outstanding cost and quality performances in the first quarter. The hard work our company has performed over the past five years has allowed us to endure a quarter of record low steel shipments, and positions us well to make the most of improving markets the balance of the year."
AK has long been the heart of Middletown as well as in the cities of it's other locations. With the recent rise in stock, one can only hope that the company continues to do well and prospers for many more years.
For more AK Steel news, check out the Middletown USA Forum!
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