Steel stocks lag on commodities weakness, construction market worries (SCHN, X, CMC, RS, NUE, AKS)

Posted in General 
June 30th, 2009

Steel stocks are among the laggards Tuesday after disappointing results from Schnitzer Steel Industries Inc. (Nasdaq: SCHN) and a lackluster consumer confidence report that helped spur lower commodity prices.

Schnitzer is weighing most heavily on the group, down more than 10 percent as of noon Tuesday, on more than twice its normal volume. The company missed earnings expectations by 21 cents a share, and revenue fell 58 percent from the same period a year earlier. The company cited weak demand in both the non-residential and infrastructure construction markets in its steel manufacturing business. The company expects the construction market weakness to continue through the rest of the year.

Among other steel names, United States Steel Corp. (NYSE: X), Commercial Metals Co. (NYSE: CMC) and Reliance Steel & Aluminum Co. (NYSE: RS) all are down more than 3 percent on moderate volume. Nucor Corp. (NYSE: NUE) shares are down more than 2 percent. AK Steel Holding Corp. (NYSE: AKS) is down more than 1 percent.  — Mike Tarsala

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