AK Steel (NYSE:AKS) Plunges on Weaker Guidance

The overall steel industry is taking a big hit as companies downwardly revise their guidance in the wake of a weakening US economy. AK Steel (NYSE:AKS) joined the growing number of steel companies lowering guidance for the third quarter, and the stock price plummeted in response.

AK now expects a loss in the third quarter of $20 a ton, significantly down from the projected profits of close to $15 a ton.

Higher operating and raw material costs were cited as the reason for the lower guidance.

The steel company dropped to $13.60, falling $0.93, or 6.37 percent, as of 1:52 PM EDT.