WEST CHESTER, Ohio,
April 24, 2012 /PRNewswire/
-- AK Steel (NYSE: AKS) today reported a net loss of
$11.8 million, or $0.11 per diluted share of common stock, for the
first quarter of 2012 compared to net income of $8.7 million, or $0.08 per diluted share, for the first quarter of
2011 and a net loss of $193.9
million, or $1.76 per share,
for the fourth quarter of 2011. The fourth quarter 2011 loss
included a non-cash pre-tax pension corridor charge of $268.1 million, or $1.50 per diluted share.
Net sales for the first quarter of 2012 were $1,508.7 million on shipments of 1,325,900 tons,
compared to sales of $1,581.1 million
on shipments of 1,423,100 tons for the year-ago first quarter. The
company said its average selling price for the first quarter of
2012 was $1,138 per ton, a 6%
increase from the fourth quarter of 2011, and about 3% higher than
the first quarter of 2011. The higher average selling price for
first quarter 2012 over first quarter 2011 was primarily due to a
richer product mix, increased contract sales and higher prices for
certain products.
The company reported an operating profit for the first quarter
of 2012 of $4.1 million, or
$3 per ton, compared to an operating
profit of $19.5 million, or
$14 per ton, for the first quarter of
2011 and an operating loss of $300.7
million, or $213 per ton, for
the fourth quarter of 2011. The fourth quarter loss included the
$268.1 million, or $190 per ton, pre-tax pension corridor charge.
The 2012 first quarter results include a LIFO credit of
$12.4 million, compared to a LIFO
credit of $44.1 million in the fourth
quarter of 2011.
"We continued to experience a slow, but steady, improvement in
market conditions during the first quarter, which helped AK Steel
achieve an operating profit," said James L.
Wainscott, Chairman, President and Chief Executive Officer
of AK Steel. "Additionally, our employees once again turned in
outstanding performances in the hallmarks of our company – safety,
quality and productivity."
The company ended the first quarter of 2012 with $42.3 million of cash and cash equivalents and
$840.6 million of availability under
the company's revolving credit facility, for total liquidity of
approximately $883 million.
Second Quarter 2012 Outlook
AK Steel said that it expects to report net income in the second
quarter of 2012. The company added that it intends to provide more
detailed second quarter guidance later in the quarter.
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. Words such as "expects,"
"anticipates," "believes," "intends," "plans," "estimates" and
other similar references to future periods typically identify such
forward-looking statements. 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 10-K
for the year ended December 31, 2011,
as updated in subsequent Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K filed with or furnished to the Securities and
Exchange Commission. 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, infrastructure and manufacturing,
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 Coal Resources, Inc., another wholly-owned subsidiary of AK
Steel, owns or leases metallurgical coal reserves in Somerset County, Pennsylvania. AK Steel also
owns 49.9% of Magnetation LLC, a joint venture headquartered in
Grand Rapids, Minnesota, which
produces iron ore concentrate from previously mined ore
reserves.
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AK
STEEL HOLDING CORPORATION
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CONSOLIDATED STATEMENTS OF
OPERATIONS
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(Unaudited)
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(Dollars
and shares in millions, except per share and per ton
data)
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Three
Months Ended
March
31,
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2012
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2011
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Shipments
(000 tons)
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1,325.9
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1,423.1
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Selling
price per ton
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$
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1,138
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$
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1,109
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Net
sales
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$
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1,508.7
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$
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1,581.1
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Cost of
products sold
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1,409.0
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1,469.1
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Selling
and administrative expenses
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55.8
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54.2
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Depreciation
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48.3
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46.7
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Pension
and OPEB expense (income)
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(8.5)
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(8.4)
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Total
operating costs
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1,504.6
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1,561.6
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Operating profit
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4.1
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19.5
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Interest
expense
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16.2
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8.6
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Other
income (expense)
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0.9
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3.4
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Income
(loss) before income taxes
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(11.2)
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14.3
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Income tax
provision (benefit)
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(4.3)
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5.8
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Net
income (loss)
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(6.9)
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8.5
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Less: Net
income (loss) attributable to noncontrolling interests
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4.9
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(0.2)
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Net
income (loss) attributable to AK Steel Holding
Corporation
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$
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(11.8)
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$
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8.7
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Basic
and diluted earnings per share:
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Net income
(loss) attributable to AK Steel Holding Corporation
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$
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(0.11)
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$
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0.08
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Weighted-average shares
outstanding:
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Basic
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110.0
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109.7
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Diluted
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110.0
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110.1
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Dividends declared and paid per
share
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$
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0.05
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$
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0.05
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AK
STEEL HOLDING CORPORATION
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CONSOLIDATED BALANCE SHEETS
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(Unaudited)
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(Dollars
in millions, except per share amounts)
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March
31,
2012
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December 31, 2011
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ASSETS
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Current
assets:
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Cash and cash equivalents
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$
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42.3
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$
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42.0
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Accounts receivable, net
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645.2
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564.2
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Inventory, net
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621.3
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418.7
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Other current assets
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241.8
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249.5
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Total current assets
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1,550.6
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1,274.4
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Property,
plant and equipment
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5,953.6
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5,967.2
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Accumulated depreciation
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(3,845.3)
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(3,797.0)
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Property,
plant and equipment, net
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2,108.3
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2,170.2
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Other
non-current assets
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1,032.4
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1,005.3
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TOTAL
ASSETS
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$
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4,691.3
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$
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4,449.9
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LIABILITIES AND EQUITY
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Current
liabilities:
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Borrowings under credit facility
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$
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145.0
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$
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250.0
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Accounts payable
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685.1
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583.6
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Accrued liabilities
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195.5
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172.8
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Current portion of long-term debt
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0.7
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0.7
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Current portion of pension and other postretirement
benefit obligations
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127.2
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130.0
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Total current liabilities
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1,153.5
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1,137.1
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Long-term debt
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949.9
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650.0
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Pension and other postretirement benefit
obligations
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1,705.8
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1,744.8
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Other non-current liabilities
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521.5
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540.8
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TOTAL
LIABILITIES
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4,330.7
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4,072.7
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Equity:
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Common stock, authorized
200,000,000 shares of $.01 par value each; issued 123,705,980
and
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1.2
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1.2
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123,229,210 shares in 2012 and 2011; outstanding 110,562,918 and
110,284,228 shares in 2012
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and 2011
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Additional paid-in capital
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1,928.8
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1,922.2
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Treasury stock, common shares at cost, 13,143,062 and
12,944,982 shares in 2012 and 2011
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(173.2)
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(171.6)
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Accumulated deficit
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(1,383.3)
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(1,366.0)
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Accumulated other comprehensive income
(loss)
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(9.4)
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2.7
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TOTAL
AK STEEL HOLDING CORPORATION STOCKHOLDERS' EQUITY
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364.1
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388.5
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Noncontrolling interests
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(3.5)
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(11.3)
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TOTAL
EQUITY
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360.6
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377.2
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TOTAL
LIABILITIES AND EQUITY
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$
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4,691.3
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$
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4,449.9
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AK
STEEL HOLDING CORPORATION
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CONSOLIDATED STATEMENTS OF CASH
FLOWS
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(Unaudited)
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(Dollars
in millions)
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Three
Months Ended
March 31,
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2012
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2011
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CASH
FLOWS FROM OPERATING ACTIVITIES:
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Net income (loss)
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$
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(6.9)
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$
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8.5
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Depreciation
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44.9
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46.7
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Depreciation—SunCoke Middletown
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3.4
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—
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Amortization
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6.3
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4.5
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Deferred income taxes
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(9.4)
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4.4
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Pension and OPEB expense (income)
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(8.5)
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(8.4)
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Contributions to pension trust
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(28.7)
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(30.0)
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Contributions to Middletown retirees VEBA
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—
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(65.0)
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Other postretirement benefit payments
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(16.3)
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(20.1)
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Working capital
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(150.7)
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(133.3)
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Working capital—SunCoke Middletown
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7.9
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(0.4)
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Other operating items, net
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8.0
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(4.3)
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Net cash flows from operating activities
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(150.0)
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(197.4)
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CASH
FLOWS FROM INVESTING ACTIVITIES:
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Capital investments
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(10.5)
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(35.6)
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Capital investments—SunCoke Middletown
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(19.2)
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(71.7)
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Other investing items, net
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(0.2)
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0.4
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Net cash flows from investing activities
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(29.9)
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(106.9)
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CASH
FLOWS FROM FINANCING ACTIVITIES:
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Net borrowings (repayments) under credit
facility
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(105.0)
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75.0
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Proceeds from issuance of long-term debt
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373.3
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—
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Redemption of long-term debt
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(73.5)
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(0.2)
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Debt issuance costs
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(8.2)
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(0.2)
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Proceeds from exercise of stock options
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—
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0.1
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Purchase of treasury stock
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(1.7)
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(1.4)
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Common stock dividends paid
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(5.5)
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(5.5)
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Advances from noncontrolling interest owner to
SunCoke Middletown
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—
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72.4
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Other financing items, net
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0.8
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1.4
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Net cash flows from financing activities
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180.2
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141.6
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Net
increase (decrease) in cash and cash equivalents
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0.3
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(162.7)
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Cash and
cash equivalents, beginning of period
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42.0
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216.8
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Cash and
cash equivalents, end of period
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$
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42.3
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$
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54.1
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AK
STEEL HOLDING CORPORATION
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STEEL
SHIPMENTS
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(Unaudited)
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(Tons in
thousands)
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Three
Months Ended
March
31,
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2012
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2011
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Tons
Shipped by Product
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Stainless/electrical
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214.9
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224.4
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Coated
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583.2
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621.8
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Cold-rolled
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286.0
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344.8
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Tubular
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36.3
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34.2
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Subtotal value-added shipments
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1,120.4
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1,225.2
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Hot-rolled
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170.5
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161.1
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Secondary
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35.0
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36.8
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Subtotal non value-added shipments
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205.5
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197.9
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Total
shipments
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1,325.9
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1,423.1
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Shipments by Product (%)
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Stainless/electrical
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16.2%
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15.8%
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Coated
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44.0%
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43.7%
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Cold-rolled
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21.6%
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24.2%
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Tubular
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2.7%
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2.4%
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Subtotal value-added shipments
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84.5%
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86.1%
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Hot-rolled
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12.9%
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11.3%
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Secondary
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2.6%
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2.6%
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Subtotal non value-added shipments
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15.5%
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13.9%
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Total
shipments
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100.0%
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100.0%
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SOURCE AK Steel