WEST CHESTER, Ohio,
April 20 /PRNewswire-FirstCall/ -- AK
Steel (NYSE: AKS) today reported net income of $1.9 million, or $0.02 per diluted share of common stock, for the
first quarter of 2010, compared to a net loss of $73.4 million, or $0.67 per diluted share, for the first quarter of
2009. The 2010 first-quarter results include a non-cash
charge of $25.3 million, or
$0.23 per diluted share of common
stock, related to federal healthcare legislation signed into law in
March. The charge reflects a reduction in the value of the
company's deferred tax asset as a result of a change to the tax
treatment of Medicare Part D reimbursements contained within the
healthcare reform law. Excluding the effect of the special
charge, net income was $27.2 million,
or $0.25 per diluted share.
(Photo:
http://www.newscom.com/cgi-bin/prnh/20100420/CL88685 )
Net sales for the first quarter of 2010 were $1,405.7 million on shipments of
1,385,800 tons, compared to net sales of $922.2 million on shipments of 778,800 tons for
the year-ago first quarter. The company said its average
selling price for the first quarter of 2010 was $1,014 per ton, a 14% decrease from the
$1,184 per ton in the first quarter
of 2009, but a 5% increase from the $964 per ton reported in the fourth quarter of
2009. The year-over-year decrease in average selling price
resulted primarily from a change in product and market mix.
The sequential quarterly increase in the average per-ton
selling price resulted from a richer product mix and higher
surcharges, which reflect rising raw material costs.
The company reported an operating profit for the first quarter
of 2010 of $57.6 million, or
$42 per ton, compared to an operating
loss of $99.9 million, or
$128 per ton, for the first quarter
of 2009. The company ended the first quarter of 2010 with
$330 million of cash and $698 million of availability under its credit
facility, for total liquidity of more than $1 billion.
The following schedule reflects the reconciliation of the
Non-GAAP quarterly financial measures discussed within this news
release:
|
Three Months
Ended
|
|
|
(Dollars in millions)
|
March
31,
|
|
|
2010
|
|
2009
|
|
|
Reconciliation to net income (loss)
attributable to AK Steel Holding Corporation
|
|
|
|
|
|
Adjusted net income (loss)
(excluding item below)
|
$
27.2
|
|
$
(73.4)
|
|
|
Income tax provision due to tax law
change
|
(25.3)
|
|
-
|
|
|
Net income (loss) attributable to AK
Steel Holding Corporation
|
$
1.9
|
|
$
(73.4)
|
|
|
|
|
|
|
|
Reconciliation to basic and diluted
earnings per share
|
|
|
|
|
|
Adjusted basic and diluted earnings
per share (excluding item below)
|
$
0.25
|
|
$
(0.67)
|
|
|
Income tax provision due to tax law
change
|
$
(0.23)
|
|
$
-
|
|
|
Basic and diluted earnings per
share
|
$
0.02
|
|
$
(0.67)
|
|
|
|
|
|
|
"AK Steel is firmly on the road to recovery," said James L. Wainscott, Chairman, President and CEO.
"Our order book for carbon products reflects robust demand,
and we are encouraged that our other markets will show steady
improvement the balance of the year."
Second-Quarter 2010 Outlook
The company said it expects shipments of approximately 1,450,000
tons for the second quarter, or nearly 5% higher than for the first
quarter, with an average selling price approximately 5% to 6%
higher than for the first quarter. Planned maintenance outage
costs are expected to be approximately $15
million higher for the second quarter compared to the first
quarter. The company also noted, however, that there remains
substantial uncertainty with respect to global iron ore pricing for
2010 and that, if there is an increase in the price of iron ore
beyond the 30% assumed with respect to the first quarter, it will
have a negative impact on its second quarter financial performance.
Because iron ore pricing for 2010 has not yet been determined, the
company is unable at this time to reliably estimate its quarterly
operating results for the second quarter of 2010.
Safe Harbor Statement
The statements in this release with respect to future results
reflect management's estimates and beliefs and are intended to be,
and hereby are identified as "forward-looking statements" for
purposes of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. The company cautions readers
that such forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from those currently expected by management, including those risks
and uncertainties discussed in the company's Annual Report on Form
10K for the year ended December 31,
2009. Except as required by law, the company disclaims
any obligation to update any forward-looking statements to reflect
future developments or events.
AK Steel
AK Steel produces flat-rolled carbon, stainless and electrical
steels, primarily for automotive, appliance, construction and
electrical power generation and distribution markets. The
company employs about 6,200 men and women in Middletown, Mansfield, Coshocton and Zanesville, Ohio; Butler, Pennsylvania; Ashland, Kentucky; Rockport, Indiana; and its corporate
headquarters in West Chester,
Ohio. Additional information about AK Steel is
available on the company's web site at www.aksteel.com.
AK Tube LLC, a wholly owned subsidiary of AK Steel, employs
about 300 men and women in plants in Walbridge, Ohio and Columbus, Indiana. AK Tube produces
carbon and stainless electric resistance welded (ERW) tubular steel
products for truck, automotive and other markets. Additional
information about AK Tube LLC is available on its web site at
www.aktube.com.
|
AK Steel Holding
Corporation
Statements of
Operations
(Unaudited)
(Dollars and
Shares in Millions, Except Per Share and Per Ton Data)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2010
|
|
2009
|
|
|
Shipments (000 tons)
|
1,385.8
|
|
778.8
|
|
|
Selling price per ton
|
$
1,014
|
|
$
1,184
|
|
|
|
|
|
|
|
|
Net sales
|
$
1,405.7
|
|
$
922.2
|
|
|
|
|
|
|
|
|
Cost of products sold
|
1,243.6
|
|
923.0
|
|
|
Selling and administrative
expenses
|
54.2
|
|
47.8
|
|
|
Depreciation
|
50.3
|
|
51.3
|
|
|
Total operating
costs
|
1,348.1
|
|
1,022.1
|
|
|
|
|
|
|
|
|
Operating profit (loss)
|
57.6
|
|
(99.9)
|
|
|
|
|
|
|
|
|
Interest expense
|
8.9
|
|
10.2
|
|
|
Other income (expense)
|
(4.6)
|
|
2.3
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes
|
44.1
|
|
(107.8)
|
|
|
|
|
|
|
|
|
Income tax provision due to tax law
change
|
25.3
|
|
-
|
|
|
Income tax provision
(benefit)
|
17.4
|
|
(34.2)
|
|
|
|
|
|
|
|
|
Net income (loss)
|
1.4
|
|
(73.6)
|
|
|
|
|
|
|
|
|
Less: Net loss attributable to
noncontrolling interests
|
(0.5)
|
|
(0.2)
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to AK
Steel Holding Corporation
|
$
1.9
|
|
$
(73.4)
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per
share:
|
|
|
|
|
|
Net income (loss) attributable to AK
Steel Holding Corporation
|
$
0.02
|
|
$
(0.67)
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
Basic
|
109.5
|
|
109.8
|
|
|
Diluted
|
110.0
|
|
109.8
|
|
|
|
|
|
|
|
|
Dividends declared and paid per
share:
|
$
0.05
|
|
$
0.05
|
|
|
|
|
|
|
|
|
AK Steel Holding
Corporation
Consolidated
Balance Sheets
(Unaudited)
(Dollars in
millions, except per share amounts)
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Current Assets
|
|
|
|
|
|
Cash and cash equivalents
|
$
330.2
|
|
$
461.7
|
|
|
Accounts receivable, net
|
598.3
|
|
463.1
|
|
|
Inventories, net
|
522.7
|
|
416.7
|
|
|
Other current assets
|
281.0
|
|
288.6
|
|
|
Total Current
Assets
|
1,732.2
|
|
1,630.1
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
5,401.9
|
|
5,385.1
|
|
|
Accumulated depreciation
|
(3,459.2)
|
|
(3,409.1)
|
|
|
Property, plant and equipment,
net
|
1,942.7
|
|
1,976.0
|
|
|
Other
|
641.6
|
|
668.6
|
|
|
|
|
|
|
|
Total Assets
|
$
4,316.5
|
|
$
4,274.7
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
Accounts payable
|
$
623.9
|
|
$
438.9
|
|
|
Other accruals
|
193.4
|
|
157.0
|
|
|
Current portion of long term
debt
|
0.7
|
|
0.7
|
|
|
Pension & other postretirement
benefit obligations
|
143.1
|
|
144.1
|
|
|
Total Current
Liabilities
|
961.1
|
|
740.7
|
|
|
|
|
|
|
|
Long-term debt
|
605.7
|
|
605.8
|
|
|
Pension & other postretirement
benefit obligations
|
1,704.0
|
|
1,856.2
|
|
|
Other liabilities
|
194.8
|
|
191.9
|
|
|
|
|
|
|
|
Total Liabilities
|
3,465.6
|
|
3,394.6
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
Common stock, authorized 200,000,000
shares of $0.01 par value each; issued 2010, 122,723,132 shares,
2009, 121,881,816 shares; outstanding 2010, 109,907,793 shares,
2009, 109,394,455 shares
|
1.2
|
|
1.2
|
|
|
Additional paid-in capital
|
1,922.7
|
|
1,911.4
|
|
|
Treasury stock, shares at cost, 2010,
12,815,339 shares; 2009, 12,487,361 shares
|
(169.7)
|
|
(162.2)
|
|
|
Accumulated deficit
|
(1,041.1)
|
|
(1,037.5)
|
|
|
Accumulated other comprehensive
income
|
139.4
|
|
167.9
|
|
|
Total AK Steel Holding
Corporation Stockholders' Equity
|
852.5
|
|
880.8
|
|
|
|
|
|
|
|
Noncontrolling interest
|
(1.6)
|
|
(0.7)
|
|
|
|
|
|
|
|
Total Stockholders'
Equity
|
850.9
|
|
880.1
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders'
Equity
|
$
4,316.5
|
|
$
4,274.7
|
|
|
|
|
|
|
|
AK Steel Holding
Corporation
Statements of Cash
Flows
(Unaudited)
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
Cash Flow From Operating
Activities:
|
|
|
|
|
|
Net income (loss)
|
$
1.4
|
|
$
(73.6)
|
|
|
Depreciation
|
50.3
|
|
51.3
|
|
|
Amortization
|
5.9
|
|
3.3
|
|
|
Deferred taxes
|
44.8
|
|
(13.8)
|
|
|
Contributions to pension
trust
|
(75.0)
|
|
(50.0)
|
|
|
Contribution to Middletown retirees
VEBA
|
(65.0)
|
|
(65.0)
|
|
|
Pension and other postretirement
benefit payments greater than expense
|
(29.0)
|
|
(19.0)
|
|
|
Working capital
|
(47.6)
|
|
124.8
|
|
|
Working capital-Middletown
Coke
|
0.5
|
|
1.0
|
|
|
Other
|
6.5
|
|
12.0
|
|
|
Net Cash Flow From Operating
Activities
|
(107.2)
|
|
(29.0)
|
|
|
|
|
|
|
|
Cash Flow From Investing
Activities:
|
|
|
|
|
|
Capital investments
|
(14.9)
|
|
(32.9)
|
|
|
Capital investments-Middletown
Coke
|
(2.0)
|
|
(12.2)
|
|
|
Other
|
-
|
|
0.4
|
|
|
Net Cash Flow From Investing
Activities
|
(16.9)
|
|
(44.7)
|
|
|
|
|
|
|
|
Cash Flow From Financing
Activities:
|
|
|
|
|
|
Redemption of long-term
debt
|
(0.2)
|
|
(19.9)
|
|
|
Proceeds from exercise of stock
options
|
1.3
|
|
-
|
|
|
Purchase of treasury stock
|
(7.5)
|
|
(11.4)
|
|
|
Common stock dividends
|
(5.0)
|
|
(5.5)
|
|
|
Advances from noncontrolling interest
owner to Middletown Coke
|
2.3
|
|
11.2
|
|
|
Other
|
1.7
|
|
(1.4)
|
|
|
Net Cash Flow From Financing
Activities
|
(7.4)
|
|
(27.0)
|
|
|
|
|
|
|
|
Net Decrease in
Cash
|
(131.5)
|
|
(100.7)
|
|
|
|
|
|
|
|
Cash and Cash Equivalents,
Beginning
|
461.7
|
|
562.7
|
|
|
|
|
|
|
|
Cash and Cash Equivalents,
Ending
|
$ 330.2
|
|
$ 462.0
|
|
|
|
|
|
|
|
AK Steel Holding
Corporation
(Unaudited)
|
|
|
|
|
|
|
|
Steel
Shipments
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2010
|
|
2009
|
|
|
Tons Shipped by Product
(000's)
|
|
|
|
|
|
Stainless/electrical
|
212.1
|
|
159.1
|
|
|
Coated
|
635.2
|
|
350.4
|
|
|
Cold-rolled
|
281.8
|
|
144.2
|
|
|
Tubular
|
28.7
|
|
18.2
|
|
|
Subtotal value-added
shipments
|
1,157.8
|
|
671.9
|
|
|
|
|
|
|
|
Hot-rolled
|
193.7
|
|
75.5
|
|
|
Secondary
|
34.3
|
|
31.4
|
|
|
Subtotal non value-added
shipments
|
228.0
|
|
106.9
|
|
|
|
|
|
|
|
Total Shipments
|
1,385.8
|
|
778.8
|
|
|
|
|
|
|
|
Shipments by Product
(%)
|
|
|
|
|
|
Stainless/electrical
|
15.3%
|
|
20.5%
|
|
|
Coated
|
45.8%
|
|
45.0%
|
|
|
Cold-rolled
|
20.3%
|
|
18.5%
|
|
|
Tubular
|
2.1%
|
|
2.3%
|
|
|
Subtotal value-added
shipments
|
83.5%
|
|
86.3%
|
|
|
|
|
|
|
|
Hot-rolled
|
14.0%
|
|
9.7%
|
|
|
Secondary
|
2.5%
|
|
4.0%
|
|
|
Subtotal non value-added
shipments
|
16.5%
|
|
13.7%
|
|
|
|
|
|
|
|
Total Shipments
|
100.0%
|
|
100.0%
|
|
|
|
|
|
|
SOURCE AK Steel