WEST CHESTER, Ohio,
Nov. 4, 2014 /PRNewswire/ -- AK
Steel (NYSE: AKS) today reported its financial results for the
third quarter of 2014.
3rd Quarter 2014 Performance Summary
- Completed the acquisition of Severstal Dearborn
- Shipments of 1,462,900 tons
- Sales of $1.59 billion with an
average selling price of $1,089 per
ton
- Net loss of $7.2 million, or
$0.05 per diluted share
- Adjusted net income of $16.4
million, or $0.12 per diluted
share
- Adjusted EBITDA of $100.5
million
- Ended 3rd quarter with liquidity of $912 million
AK Steel reported a net loss of $7.2
million, or $0.05 per diluted
share of common stock, for the third quarter of 2014, compared to a
net loss of $31.7 million, or
$0.23 per diluted share, for the
third quarter of 2013 and a net loss of $17.1 million, or $0.13 per diluted share, for the second quarter
of 2014. The third quarter 2014 results reflect one-time costs
associated with the acquisition of Severstal Dearborn, LLC
("Dearborn"), which the company
completed on September 16, 2014.
Excluding acquisition-related expenses totaling $23.6 million, or $0.17 per diluted share, as discussed below, the
company reported adjusted net income of $16.4 million, or $0.12 per diluted share. The company reported
adjusted EBITDA (as defined in the "Non-GAAP Financial Measures"
section below) of $100.5 million, or
$69 per ton, for the third quarter of
2014 compared to adjusted EBITDA of $53.5
million, or $43 per ton, for
the year-ago third quarter and adjusted EBITDA of $65.5 million, or $47 per ton, for the second quarter of 2014.
"AK Steel's third quarter financial performance exceeded our
expectations," said James L.
Wainscott, Chairman, President and CEO of AK Steel. "Our
continuing trend of posting adjusted net income provides us with a
solid foundation for future growth in earnings and cash flow."
Net sales for the third quarter of 2014 were $1.59 billion on shipments of 1,462,900 tons,
compared to net sales of $1.33
billion on shipments of 1,242,400 tons for the year-ago
third quarter and net sales of $1.53
billion on shipments of 1,397,500 tons for the second
quarter of 2014. The increase in shipments in the third quarter of
2014 compared to the year-ago period and to the second quarter of
2014 was principally due to shipments from Dearborn Works following
the acquisition and higher shipments of carbon steel to the
automotive and infrastructure and manufacturing markets.
The company said that its average selling price for the third
quarter of 2014 was $1,089 per ton,
down slightly from the second quarter of 2014. The minor decrease
from the second quarter was due to a change in product mix related
to the addition of Dearborn. The
company also said its average selling price for the third quarter
of 2014 increased 2% from the third quarter of 2013, primarily as a
result of higher spot market prices for carbon steel products.
Costs of products sold increased in the third quarter of 2014 due
to the acquisition of Dearborn
(see discussion below) and to the continued adverse effects from an
unplanned outage at the Ashland Works blast furnace. During the
third quarter, the company incurred $23.2
million for unplanned outage costs at the Ashland Works
blast furnace and for costs related to lower than normal production
levels. The company also incurred $1.1
million of costs for planned outages during the third
quarter of 2014, compared to $4.2
million in the year-ago third quarter and $2.5 million in the second quarter of 2014.
The 2014 third quarter results include a LIFO credit of
$10.9 million, compared to a LIFO
credit of $15.8 million for the third
quarter of 2013 and a LIFO credit of $3.3
million for the second quarter of 2014. Included in the LIFO
credit for the third quarter of 2014 is a credit of $7.3 million related to the Dearborn acquisition.
The company ended the third quarter of 2014 with total liquidity
of $912.3 million, consisting of cash
and cash equivalents and $868.6
million of availability under the company's revolving credit
facility. Consistent with prior seasonal patterns, working capital
was a source of $19.0 million of cash
in the third quarter of 2014. The company anticipates that working
capital will be a source of cash in the fourth quarter of 2014.
Nine-Month Results
For the first nine months of 2014,
the company reported a net loss of $110.4
million, or $0.79 per diluted
share. Excluding acquisition-related expenses totaling $24.6 million, or $0.18 per diluted share, as discussed below, the
company reported an adjusted net loss of $85.8 million, or $0.61 per diluted share. For the corresponding
nine months of 2013, the company reported a net loss of
$82.0 million, or $0.60 per diluted share. Sales for the first nine
months of 2014 were $4.51 billion
compared to sales of $4.11 billion in
the first nine months of 2013. Shipments for the first nine months
of 2014 were 4,122,500 tons compared to 3,855,900 tons in the first
nine months of 2013.
Extreme winter weather conditions in early 2014 resulted in
extra costs of approximately $45.0
million for the first nine months of 2014. Energy costs were
higher in the first quarter of 2014, primarily for electricity and
natural gas. The extreme winter weather conditions also affected
the delivery of iron ore pellets in the second quarter of 2014,
with the company incurring additional costs for transportation and
operations. The first nine months of 2014 also included a
$5.8 million charge relating to a
litigation settlement.
Incidents at the company's Ashland Works blast furnace in
February and the third quarter of 2014 resulted in unplanned outage
costs of approximately $41.2 million
in the first nine months of 2014. The prior year, in June 2013, an incident at the company's
Middletown Works blast furnace
resulted in unplanned outage costs of approximately $18.0 million in the first nine months of
2013.
The company recorded expenses of $31.9
million during the first nine months of 2014 for planned
outages, compared to expenses of $26.8
million during the first nine months of 2013.
Acquisition of Dearborn
As previously disclosed, on
September 16, 2014, AK Steel
completed its acquisition of Dearborn, which included the integrated
steelmaking assets located in Dearborn,
Michigan, the Mountain State Carbon, LLC cokemaking facility
located in Follansbee, West
Virginia, and interests in joint ventures that process
flat-rolled steel products. The company's results for the three and
nine months ended September 30, 2014,
include the effects of the acquisition and Dearborn's operations for the period from the
date of acquisition. The results for the three and nine months
ended September 30, 2014 include net
sales and operating profit of $90.0
million and $2.1 million,
respectively, attributable to Dearborn since the acquisition. For the three
and nine months ended September 30,
2014, the company incurred acquisition costs of $6.3 million and $7.3
million, respectively. Acquisition costs are primarily
comprised of transaction fees and direct costs, including legal,
finance, consulting and other professional fees and are included in
selling and administrative expenses. In addition, the company
incurred $12.6 million of costs in
the three and nine months ended September
30, 2014 for committed bridge financing that was unused. As
a result, these costs were expensed in the third quarter and are
included in other income (expense). Subsequent to the acquisition,
the company incurred severance costs of $2.6
million for certain employees of Dearborn, which are included in selling and
administrative expenses for the three and nine months ended
September 30, 2014, and an income tax
charge of $2.1 million related to
changes in the value of deferred tax assets resulting from the
acquisition.
Fourth Quarter 2014 Outlook
Consistent with its
current practice, the company expects to provide detailed guidance
for its fourth quarter results in December. However, in advance of
that guidance, the company notes that its fourth quarter results
will be affected by a planned outage at the company's Ashland Works
blast furnace which began in late October and is expected to last
approximately 28 days. That outage previously had been planned to
occur in 2015, but has been advanced to fully address operational
issues with the Ashland Works blast furnace that began earlier this
year. Among other things, the planned outage will include a reline
of the blast furnace hearth.
The reduced operations at the Ashland Works blast furnace as a
result of the outage will affect the fourth quarter of 2014 in
terms of production, shipments, operating costs and margins. In the
fourth quarter of 2014, the company expects to make capital
investments of $20.0 million and to
incur costs of approximately $30.0
million associated with the planned outage itself and
reduced production levels at Ashland Works in the period prior to
the outage. The company took steps in advance of the planned outage
to minimize the potential impact on its customers, including
purchasing additional slabs and building inventory through
increased production at other plants.
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 that Dearborn will not be integrated successfully
into AK Steel following the consummation of the acquisition, and
that cost savings, synergies, accretion to earnings, increased
shipments and other anticipated benefits and opportunities from the
acquisition may not be fully realized or may take longer to realize
than expected. In addition, our results and financial condition and
any benefits from the acquisition could be adversely affected by
reduced selling prices, shipments and profits associated with a
highly competitive industry with excess capacity; changes in the
cost of raw materials and energy; the company's significant amount
of debt and other obligations; severe financial hardship or
bankruptcy of one or more of the company's major customers; reduced
demand in key product markets due to competition from alternatives
to steel or other factors; increased global steel production and
imports; excess inventory of raw materials; supply chain
disruptions or poor quality of raw materials; production disruption
or reduced production levels; the company's healthcare and pension
obligations; not timely reaching new labor agreements; major
litigation, arbitrations, environmental issues and other
contingencies; regulatory compliance and changes; climate change
and greenhouse gas emission limitations; conditions in the
financial, credit, capital and banking markets; the company's use
of derivative contracts to hedge commodity pricing volatility; the
value of the company's net deferred tax assets; inability to fully
realize benefits of long-term cost savings and margin enhancement
initiatives; lower quantities, quality or yield of estimated coal
reserves of AK Coal Resources, Inc.; increased governmental
regulation of mining activities; inability to hire or retain
skilled labor and experienced manufacturing and mining managers;
and IT security threats and sophisticated cybercrime; as well as
those risks and uncertainties discussed in the company's Annual
Report on Form 10-K for the year ended December 31, 2013, 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 is a world leader in the production
of flat-rolled carbon, stainless and electrical steel products,
primarily for automotive, infrastructure and manufacturing,
construction and electrical power generation and distribution
markets. The company's AK Tube LLC subsidiary produces carbon and
stainless electric resistance welded tubular steel products for
truck, automotive and other markets. Headquartered in West Chester, Ohio (Greater Cincinnati), the company employs
approximately 8,000 men and women at eight steel plants, two coke
plants and two tube manufacturing plants across six states:
Indiana, Kentucky, Michigan, Ohio, Pennsylvania and West Virginia. The company also has interests
in iron ore through its Magnetation LLC joint venture and in
metallurgical coal through its AK Coal Resources, Inc. subsidiary.
Additional information about AK Steel is available at
www.aksteel.com.
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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
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Nine Months
Ended
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September
30,
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September
30,
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|
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2014
|
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2013
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2014
|
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2013
|
Shipments (000
tons)
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1,462.9
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1,242.4
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4,122.5
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3,855.9
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Selling price per
ton
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$
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1,089
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$
|
1,071
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$
|
1,093
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$
|
1,065
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Net
sales
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$
|
1,593.8
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|
$
|
1,331.3
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|
$
|
4,508.1
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$
|
4,105.6
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|
|
|
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Cost of products
sold
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1,438.9
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|
1,222.4
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4,191.4
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3,783.9
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Selling and
administrative expenses
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65.6
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|
51.5
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179.7
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153.3
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Depreciation
|
|
49.1
|
|
|
48.4
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|
|
146.3
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|
|
144.9
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Pension and OPEB
expense (income)
|
|
(23.5)
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|
(16.9)
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(74.2)
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(49.3)
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Total operating
costs
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1,530.1
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|
1,305.4
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4,443.2
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4,032.8
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Operating
profit
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63.7
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|
|
25.9
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|
|
64.9
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|
|
72.8
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|
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Interest
expense
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35.6
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|
|
32.1
|
|
|
101.0
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|
|
95.1
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Other income
(expense)
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(15.3)
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|
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(2.8)
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(20.2)
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1.5
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Income (loss)
before income taxes
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12.8
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(9.0)
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(56.3)
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(20.8)
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|
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Income tax
expense
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|
3.9
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6.7
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7.5
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13.6
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|
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Net income
(loss)
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8.9
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(15.7)
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(63.8)
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(34.4)
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Less: Net income
attributable to noncontrolling interests
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|
16.1
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|
16.0
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|
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46.6
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|
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47.6
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|
|
|
|
|
|
|
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|
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Net income (loss)
attributable to AK Steel Holding Corporation
|
|
$
|
(7.2)
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$
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(31.7)
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|
$
|
(110.4)
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|
|
$
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(82.0)
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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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(0.05)
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$
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(0.23)
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$
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(0.79)
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$
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(0.60)
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Weighted-average
shares outstanding:
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Basic
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142.8
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135.9
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138.4
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135.8
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Diluted
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142.8
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135.9
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138.4
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135.8
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AK STEEL HOLDING
CORPORATION
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CONSOLIDATED
BALANCE SHEETS
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(Unaudited)
|
(Dollars in millions,
except per share amounts)
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|
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|
|
|
September 30,
2014
|
|
December 31,
2013
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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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60.8
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$
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45.3
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Accounts receivable,
net
|
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707.6
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|
525.2
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Inventory,
net
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|
1,126.0
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|
586.6
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Other current
assets
|
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151.0
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|
|
116.1
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Total current
assets
|
|
2,045.4
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|
1,273.2
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Property, plant and
equipment
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6,335.9
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5,871.9
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Accumulated
depreciation
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(4,120.8)
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|
(3,991.8)
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Property, plant and
equipment, net
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2,215.1
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1,880.1
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Investment in
affiliates
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396.5
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|
209.8
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Other non-current
assets
|
|
228.4
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|
|
242.6
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TOTAL
ASSETS
|
|
$
|
4,885.4
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|
$
|
3,605.7
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LIABILITIES AND
EQUITY
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Current
liabilities:
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Accounts
payable
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$
|
812.3
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$
|
601.8
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Accrued
liabilities
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281.7
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|
142.9
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Current portion of
long-term debt
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0.2
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0.8
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Current portion of
pension and other postretirement benefit obligations
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62.2
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85.9
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Total current
liabilities
|
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1,156.4
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|
831.4
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Long-term
debt
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|
2,406.4
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|
1,506.2
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Pension and other
postretirement benefit obligations
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|
832.4
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|
965.4
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Other non-current
liabilities
|
|
124.4
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|
|
110.0
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TOTAL
LIABILITIES
|
|
4,519.6
|
|
|
3,413.0
|
|
|
|
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Exchangeable notes
exchange feature
|
|
31.0
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—
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Equity:
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Common stock,
authorized 300,000,000 shares of $0.01 par value each; issued
177,216,956 and 149,691,388 shares in 2014 and 2013; outstanding
177,073,715 and 136,380,078 shares in 2014 and 2013
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1.8
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|
|
1.5
|
|
Additional paid-in
capital
|
|
2,226.4
|
|
|
2,079.2
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|
Treasury stock,
common shares at cost, 143,241 and 13,311,310 shares in 2014 and
2013
|
|
(1.0)
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|
|
(174.0)
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|
Accumulated
deficit
|
|
(2,561.5)
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|
|
(2,451.1)
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|
Accumulated other
comprehensive income
|
|
249.4
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|
|
323.4
|
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Total stockholders'
equity (deficit)
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|
(84.9)
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|
(221.0)
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Noncontrolling
interests
|
|
419.7
|
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|
413.7
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TOTAL
EQUITY
|
|
334.8
|
|
|
192.7
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TOTAL LIABILITIES
AND EQUITY
|
|
$
|
4,885.4
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$
|
3,605.7
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Note: The company
completed its acquisition of Severstal Dearborn, LLC on September
16, 2014. The initial purchase price allocation is preliminary and
is subject to the completion of several items, including
consideration of final valuations and the final determination of
post-closing purchase price adjustments relating to working
capital.
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AK STEEL HOLDING
CORPORATION
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
(Dollars in
millions)
|
|
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|
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
|
2014
|
|
2013
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net income
(loss)
|
|
$
|
(63.8)
|
|
|
$
|
(34.4)
|
|
Depreciation
|
|
135.6
|
|
|
134.4
|
|
Depreciation—SunCoke
Middletown
|
|
10.7
|
|
|
10.5
|
|
Amortization
|
|
15.9
|
|
|
15.1
|
|
Deferred income
taxes
|
|
6.3
|
|
|
11.0
|
|
Pension and OPEB
expense (income)
|
|
(74.2)
|
|
|
(49.3)
|
|
Contributions to
pension trust
|
|
(196.5)
|
|
|
(140.2)
|
|
Contributions to
Butler and Zanesville retirees VEBAs
|
|
(3.1)
|
|
|
(30.8)
|
|
Other postretirement
benefit payments
|
|
(48.8)
|
|
|
(47.2)
|
|
Changes in working
capital
|
|
(134.9)
|
|
|
(91.7)
|
|
Changes in working
capital—SunCoke Middletown
|
|
(13.7)
|
|
|
(1.0)
|
|
Other operating items,
net
|
|
(14.1)
|
|
|
(0.1)
|
|
Net cash flows
from operating activities
|
|
(380.6)
|
|
|
(223.7)
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Capital
investments
|
|
(38.2)
|
|
|
(45.3)
|
|
Capital
investments—SunCoke Middletown
|
|
(1.1)
|
|
|
(2.8)
|
|
Investments in
Magnetation
|
|
(90.0)
|
|
|
(50.0)
|
|
Investment in acquired
business, net of cash acquired
|
|
(677.2)
|
|
|
—
|
|
Other investing items,
net
|
|
15.4
|
|
|
15.1
|
|
Net cash flows
from investing activities
|
|
(791.1)
|
|
|
(83.0)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Net borrowings under
credit facility
|
|
470.0
|
|
|
185.0
|
|
Proceeds from issuance
of long-term debt
|
|
427.1
|
|
|
31.9
|
|
Redemption of
long-term debt
|
|
(0.6)
|
|
|
(27.2)
|
|
Proceeds from issuance
of common stock
|
|
345.3
|
|
|
—
|
|
Debt issuance
costs
|
|
(10.6)
|
|
|
(3.1)
|
|
SunCoke Middletown
distributions to noncontrolling interest owners
|
|
(40.6)
|
|
|
(41.1)
|
|
Other financing items,
net
|
|
(3.4)
|
|
|
(0.1)
|
|
Net cash flows
from financing activities
|
|
1,187.2
|
|
|
145.4
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
15.5
|
|
|
(161.3)
|
|
Cash and cash
equivalents, beginning of period
|
|
45.3
|
|
|
227.0
|
|
Cash and cash
equivalents, end of period
|
|
$
|
60.8
|
|
|
$
|
65.7
|
|
AK STEEL HOLDING
CORPORATION
NON-GAAP FINANCIAL
MEASURES
(Unaudited)
(Dollars in millions)
In certain of its disclosures in this news release, the company
has reported adjusted EBITDA and adjusted net income that excludes
the effects of the acquisition-related expenses of Dearborn. Management believes that reporting
adjusted net income attributable to AK Holding (as a total and on a
per share basis) with these items excluded more clearly reflects
the Company's current operating results and provides investors with
a better understanding of the Company's overall financial
performance.
EBITDA is an acronym for earnings before interest, taxes,
depreciation and amortization. It is a metric that is sometimes
used to compare the results of companies by removing the effects of
different factors that might otherwise make comparisons inaccurate
or inappropriate. For purposes of this news release, the company
has made an adjustment to EBITDA in order to exclude the effect of
noncontrolling interests and the acquisition-related expenses of
Dearborn. The adjusted results,
although not financial measures under generally accepted accounting
principles in the United States
("GAAP") and not identically applied by other companies, facilitate
the ability to analyze the company's financial results in relation
to those of its competitors and to the company's prior financial
performance by excluding items that otherwise would distort the
comparison. Adjusted EBITDA and adjusted net income are not,
however, intended as alternative measures of operating results or
cash flow from operations as determined in accordance with GAAP and
are not necessarily comparable to similarly titled measures used by
other companies.
Neither current shareholders nor potential investors in the
company's securities should rely on adjusted EBITDA or adjusted net
income as a substitute for any GAAP financial measure and the
company encourages current and potential investors to review the
following reconciliations of net income (loss) attributable to AK
Holding to adjusted EBITDA and adjusted net income.
Reconciliation of
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Three Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
Jun
30,
|
(dollars in millions,
except per ton)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
Net income (loss)
attributable to AK Holding
|
|
$
|
(7.2)
|
|
|
$
|
(31.7)
|
|
|
$
|
(110.4)
|
|
|
$
|
(82.0)
|
|
|
$
|
(17.1)
|
|
Net income
attributable to noncontrolling interests
|
|
16.1
|
|
|
16.0
|
|
|
46.6
|
|
|
47.6
|
|
|
15.6
|
|
Income tax
expense
|
|
3.9
|
|
|
6.7
|
|
|
7.5
|
|
|
13.6
|
|
|
1.8
|
|
Interest
expense
|
|
35.6
|
|
|
32.1
|
|
|
101.0
|
|
|
95.1
|
|
|
33.2
|
|
Interest
income
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
(1.0)
|
|
|
—
|
|
Depreciation
|
|
49.1
|
|
|
48.4
|
|
|
146.3
|
|
|
144.9
|
|
|
48.5
|
|
Amortization
|
|
1.4
|
|
|
1.6
|
|
|
7.2
|
|
|
7.7
|
|
|
1.6
|
|
EBITDA
|
|
98.9
|
|
|
73.0
|
|
|
198.2
|
|
|
225.9
|
|
|
83.6
|
|
Less: EBITDA of
noncontrolling interests (a)
|
|
19.9
|
|
|
19.5
|
|
|
57.5
|
|
|
58.1
|
|
|
19.1
|
|
Acquisition-related
expenses
|
|
21.5
|
|
|
—
|
|
|
22.5
|
|
|
—
|
|
|
1.0
|
|
Adjusted
EBITDA
|
|
$
|
100.5
|
|
|
$
|
53.5
|
|
|
$
|
163.2
|
|
|
$
|
167.8
|
|
|
$
|
65.5
|
|
Adjusted EBITDA per
ton
|
|
$
|
69
|
|
|
$
|
43
|
|
|
$
|
40
|
|
|
$
|
44
|
|
|
$
|
47
|
|
|
|
(a)
The reconciliation of EBITDA of
noncontrolling interests to net income attributable to
noncontrolling interests is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Three Months
Ended
|
|
|
|
|
September
30,
|
|
September
30,
|
|
Jun
30,
|
|
|
(dollars in
millions)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
|
Net income
attributable to noncontrolling interests
|
|
$
|
16.1
|
|
|
$
|
16.0
|
|
|
$
|
46.6
|
|
|
$
|
47.6
|
|
|
$
|
15.6
|
|
|
|
Depreciation
|
|
3.8
|
|
|
3.5
|
|
|
10.9
|
|
|
10.5
|
|
|
3.5
|
|
|
|
EBITDA of
noncontrolling interests
|
|
$
|
19.9
|
|
|
$
|
19.5
|
|
|
$
|
57.5
|
|
|
$
|
58.1
|
|
|
$
|
19.1
|
|
Reconciliation of
Adjusted Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Three Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
Jun
30,
|
(dollars in millions,
except per share)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
Reconciliation to
Net Income (Loss) Attributable to AK Steel Holding
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
attributable to AK Steel Holding Corporation
|
|
$
|
16.4
|
|
|
$
|
(31.7)
|
|
|
$
|
(85.8)
|
|
|
$
|
(82.0)
|
|
|
$
|
(16.1)
|
|
Acquisition-related
expenses
|
|
(23.6)
|
|
|
—
|
|
|
(24.6)
|
|
|
—
|
|
|
(1.0)
|
|
Net income (loss)
attributable to AK Steel Holding Corporation, as
reported
|
|
$
|
(7.2)
|
|
|
$
|
(31.7)
|
|
|
$
|
(110.4)
|
|
|
$
|
(82.0)
|
|
|
$
|
(17.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to
Basic and Diluted Earnings (Losses) per Share
|
|
|
|
|
|
|
|
|
|
|
Adjusted basic and
diluted earnings per share
|
|
$
|
0.12
|
|
|
$
|
(0.23)
|
|
|
$
|
(0.61)
|
|
|
$
|
(0.60)
|
|
|
$
|
(0.12)
|
|
Acquisition-related
expenses
|
|
(0.17)
|
|
|
—
|
|
|
(0.18)
|
|
|
—
|
|
|
(0.01)
|
|
Basic and diluted
earnings (losses) per share, as reported
|
|
$
|
(0.05)
|
|
|
$
|
(0.23)
|
|
|
$
|
(0.79)
|
|
|
$
|
(0.60)
|
|
|
$
|
(0.13)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AK STEEL HOLDING
CORPORATION
|
STEEL
SHIPMENTS
|
(Unaudited)
|
(Tons in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Tons Shipped by
Product
|
|
|
|
|
|
|
|
|
Stainless/electrical
|
|
216.6
|
|
|
207.0
|
|
|
646.6
|
|
|
626.5
|
|
Coated
|
|
697.0
|
|
|
596.6
|
|
|
1,935.3
|
|
|
1,812.8
|
|
Cold-rolled
|
|
288.2
|
|
|
261.5
|
|
|
872.7
|
|
|
801.0
|
|
Tubular
|
|
31.1
|
|
|
29.5
|
|
|
95.5
|
|
|
92.5
|
|
Subtotal
value-added shipments
|
|
1,232.9
|
|
|
1,094.6
|
|
|
3,550.1
|
|
|
3,332.8
|
|
Hot-rolled
|
|
194.7
|
|
|
123.5
|
|
|
480.3
|
|
|
447.6
|
|
Secondary
|
|
35.3
|
|
|
24.3
|
|
|
92.1
|
|
|
75.5
|
|
Subtotal non
value-added shipments
|
|
230.0
|
|
|
147.8
|
|
|
572.4
|
|
|
523.1
|
|
Total
shipments
|
|
1,462.9
|
|
|
1,242.4
|
|
|
4,122.5
|
|
|
3,855.9
|
|
|
|
|
|
|
|
|
|
|
Shipments by
Product (%)
|
|
|
|
|
|
|
|
|
Stainless/electrical
|
|
14.8
|
%
|
|
16.7
|
%
|
|
15.7
|
%
|
|
16.2
|
%
|
Coated
|
|
47.6
|
%
|
|
48.0
|
%
|
|
46.9
|
%
|
|
47.0
|
%
|
Cold-rolled
|
|
19.7
|
%
|
|
21.0
|
%
|
|
21.2
|
%
|
|
20.8
|
%
|
Tubular
|
|
2.2
|
%
|
|
2.4
|
%
|
|
2.3
|
%
|
|
2.4
|
%
|
Subtotal
value-added shipments
|
|
84.3
|
%
|
|
88.1
|
%
|
|
86.1
|
%
|
|
86.4
|
%
|
Hot-rolled
|
|
13.3
|
%
|
|
9.9
|
%
|
|
11.7
|
%
|
|
11.6
|
%
|
Secondary
|
|
2.4
|
%
|
|
2.0
|
%
|
|
2.2
|
%
|
|
2.0
|
%
|
Subtotal non
value-added shipments
|
|
15.7
|
%
|
|
11.9
|
%
|
|
13.9
|
%
|
|
13.6
|
%
|
Total
shipments
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
SOURCE AK Steel