AK Steel reports 3Q loss of $60.9M
WEST CHESTER, Ohio -- AK Steel Holding Corp. said Tuesday that its third-quarter loss widened to $60.9 million, as steel prices dropped.
The results fell significantly short of Wall Street predictions. The West Chester, Ohio-based company's loss amounted to 55 cents per share compared with a loss of $3.5 million, or 3 cents per share, a year ago. Revenue fell 7.7 percent to $1.46 billion.
Analysts, on average, expected a loss of 35 cents per share on $1.48 billion in revenue, according to FactSet.
Steel shipments were flat at about 1.4 million tons, and the selling price per ton fell 7.3 percent to $1,073 per ton. AK Steel said that tough economic conditions around the world continue to hurt steel shipping volumes and prices. In addition, the company said it continues to deal with some higher-cost raw material inventories.
Target to sell credit card business to TD Bank
NEW YORK -- Target Corp. on Tuesday said it reached a deal to sell its entire consumer credit card business to TD Bank Group, ending an almost two-year search for a buyer.
The discounter, based in Minneapolis, said the sale price is equal to the gross value of the outstanding receivables at the time of closing. Target's portfolio currently has a gross value of about $5.9 billion.
The two companies also entered into a seven-year pact under which TD Bank will underwrite, fund and own future Target credit card and Target Visa receivables in the U.S.
As part of the agreement, TD Bank, based in Toronto, will control risk management policies and regulatory compliance and Target will continue to perform account servicing functions. That means TD Bank will make decisions about things like which applications are accepted and what interest rates are charged to customers, for example, while Target still handles bill processing and customer service issues.
RadioShack posts 3Q loss, misses Street's view
FORT WORTH, Texas -- RadioShack reported a larger-than-expected loss for its third quarter as the electronics retailer's revenue slipped.
The struggling company has seen its profits erode over the past two years and in September it announced the departure of CEO James Gooch. The chain's troubles are partly due to wider problems in the brick-and-mortar electronics industry and add fuel to the notion that selling consumer electronics in brick-and-mortar stores is becoming less and less viable.
Interim CEO Dorvin Lively said that RadioShack had raised $175 million in new financing during the quarter and used those proceeds and some available cash to repay some debt.
For the three months ended Sept. 30, RadioShack Corp. lost $47.1 million, or 47 cents per share. That compares with a net income of $300,000, or breakeven results, a year earlier.