I added 1/8 more to my target allocation in AKS today at $8 per share. This brings my total holdings to 1/4 of target with an average cost basis of $9 per share. AK Steel is now paying an effective annual dividend of $2.19%.
Today AK Steel Holding Corporation (AKS) added a surcharge of $460 per ton for a broad range of electrical steel products that it produces. This surcharge will be reflected in the invoices of electrical steel products to be shipped in September 2011.
AK Steel is positioned to focus on products with high gross margins. Electrical steel continues to be the company’s strongest product line, with demand recovering in the U.S. and abroad, though at a slower rate. AK Steel is operating its plants at above 80% capacity and is well positioned to serve the end-markets when demand rebounds. Value-added shipments including stainless/electrical, Cold-rolled and Tubular product increased to 245.7, 318.1 and 32.8 tons, respectively, compared with 218.9, 284.7 and 32.6 tons, respectively in the year-earlier quarter.