AK Steel Reports Record Value-Added and Total Quarterly Shipments
14 April 1999
AK Steel Reports Record Value-Added and Total Quarterly Shipments
MIDDLETOWN, Ohio, April 13 -- AK Steel reported
earnings of $27.6 million, or $0.46 per diluted share of common stock, on
record shipments of 1,274,000 tons for the first quarter of 1999. In the
first quarter of 1999, the company shipped a record 75% of its product as
value-added cold-rolled and coated material, an increase from 68% in the year-
ago quarter.
The company reported operating profit of $47.3 million, or $37 per ton
shipped, for the first quarter of 1999. Sales for the 1999 first quarter were
$632.2 million.
"Our goal to enrich our product mix through increased cold-rolled and
coated shipments is progressing steadily," said Richard M. Wardrop, Jr.,
chairman and chief executive officer. "We eagerly await the start-up of the
two remaining operating units of Rockport Works in support of that goal." Mr.
Wardrop also noted the performance of the company's hot strip rolling mill in
Middletown, which rolled a quarterly record of 1,431,000 tons during the
quarter.
"Employees of the Middletown hot strip mill are rising to their challenge
of supporting an annual shipment level over the five million ton mark," said
Mr. Wardrop. The company said hot strip mill productivity has increased from
an average of 370,000 tons per month in 1995 to 423,000 tons per month in
1998. The increased hot mill productivity is necessary to support the
additional cold rolling and coating requirements of the company's new Rockport
Works.
Rockport Works' Temper Rolling and Hydrogen Annealing Begin Operations
During the first quarter of 1999, operations began on the company's
hydrogen annealing and temper rolling facilities at its new Rockport, Indiana
plant. The units started operations about three months ahead of schedule.
These units will support the sale of annealed and tempered cold-rolled
material from Rockport Works. Only two units remain under construction at the
Rockport Works. A continuous stainless annealing and pickling line is
scheduled to begin operations in the second quarter, while a continuous carbon
pickling line is scheduled to begin operations in the third quarter.
Common Stock Dividend Declared
The company also said its board of directors declared a regular quarterly
common stock dividend of $0.125 per share, payable on May 19, 1999, to
shareholders of record on April 23, 1999.
The company said net income and earnings per share amounts in the first
quarter of 1999 reflected a Kentucky recycling tax credit of $11.6 million, or
$0.19 per diluted share of common stock. The credit will be utilized to
offset future Kentucky income tax liabilities.
AK Steel produces low-carbon and stainless flat-rolled steel for
automotive, appliance, food and chemical processing, construction and other
markets. The company employs about 5,800 people in plants and offices in
Middletown, Ashland, Kentucky and Rockport, Indiana.
AK Steel Corporation
Statements of Income & Earnings Per Share Data
($ Millions except per share data)
Three Months Ended
March 31,
1999 1998
Shipments (000 tons) 1,274 1,088
Net Sales $632.2 $588.2
Cost of Products Sold 521.5 483.6
Selling and Administrative 30.2 29.2
Depreciation 33.2 21.2
Total Operating Costs 584.9 534.0
Operating Profit 47.3 54.2
Interest Expense 24.7 15.7
Other Income 3.2 6.9
Income Before Income Taxes 25.8 45.4
Income Tax Provision/(Benefit) (1.8) 17.0
Net Income $27.6 $28.4
Earnings Per Share Data
(Shares in thousands)
Three Months Ended March 31, 1999 1998
Basic Earnings Per Share $0.47 $0.47
Diluted Earnings Per Share $0.46 $0.47
Weighted Average Shares
Outstanding - Basic 59,172 59,928
Weighted Average Shares
Outstanding - Diluted 59,694 60,214
This news release includes "forward-looking statements" within the meaning
of Section 21E of the Securities and Exchange Act of 1934. In particular, all
statements herein with respect to Rockport Works, including without limitation
those with respect to the scheduled start-up of its major components, its
production capabilities and targeted performance levels and its anticipated
impact on the company's product mix are forward-looking statements. Although
management believes that the expectations reflected in such forward-looking
statements are reasonable, there is no assurance that those expectations will
prove to have been correct. Important factors that could cause actual results
to differ from management's expectations include unanticipated technical
delays in the construction process and in the installation of critical
components and unexpected problems in initiating operations, realizing
targeted operating speeds and achieving desired product specifications and
consistency.