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AK STEEL REPORTS FINANCIAL RESULTS FOR SECOND QUARTER OF 2013

        AK STEEL REPORTS FINANCIAL RESULTS FOR SECOND QUARTER OF 2013

PR Newswire

WEST CHESTER, Ohio, July 23, 2013

WEST CHESTER, Ohio, July 23, 2013 /PRNewswire/ --AK Steel (NYSE: AKS) today
reported its financial results for the second quarter of 2013.

2nd Quarter 2013 Performance Summary

  oShipments of 1,323,700 tons
  oSales of $1.4 billion with an average selling price of $1,061 per ton
  oNet loss of $40.4 million, or $0.30 per diluted share
  oAdjusted EBITDA of $47.5 million
  oStrong liquidity in excess of $900 million
  oMiddletown (OH) Works blast furnace restarted successfully on July 12,
    2013

AK Steel reported a net loss of $40.4 million, or $0.30 per diluted share of
common stock, for the second quarter ended June 30, 2013, compared to a net
loss of $724.2 million, or $6.55 per diluted share, for the second quarter of
2012. The results for the second quarter of 2012 included a non-cash income
tax charge of $735.6 million, or $6.65 per diluted share, as a result of a
change in a deferred tax asset valuation allowance. The company reported
adjusted EBITDA (as defined in the "Non-GAAP Financial Measures" section
below) of $47.5 million, or $36 per ton, for the second quarter of 2013
compared to adjusted EBITDA of $88.3 million, or $66 per ton, for the year-ago
second quarter and adjusted EBITDA of $66.8 million, or $52 per ton, for the
first quarter of 2013.

Net sales for the second quarter of 2013 were $1,404.5 million on shipments of
1,323,700 tons, compared to net sales of $1,538.4 million on shipments of
1,335,800 tons for the year-ago second quarter and net sales of $1,369.8
million on shipments of 1,289,800 tons for the first quarter of 2013. The
lower shipments for the second quarter of 2013 compared to the year-ago period
were primarily due to lower shipments to the carbon spot market and electrical
steel market, partially offset by increased shipments to the automotive
market. The unplanned outage of the Middletown Works blast furnace also
contributed to a decline in shipments in the second quarter of 2013. The
higher shipments in the second quarter of 2013 compared to the first quarter
of 2013 were primarily due to higher shipments to the automotive market,
partially offset by lower shipments to the carbon spot market.

The company said its average selling price for the second quarter of 2013 was
$1,061 per ton, an 8% decrease from the second quarter of 2012 and flat with
the first quarter of 2013. The average selling price for the second quarter of
2013 improved over the first quarter of the year as a result of the favorable
mix of shipments, but was offset by lower spot market prices for carbon steel
products. The lower average selling price for the second quarter of 2013
compared to the second quarter of 2012 was primarily due to lower spot market
prices for carbon steel products, reduced raw material surcharges and lower
selling prices for electrical steel products globally.

The decrease in adjusted EBITDA from the prior quarter was primarily the
result of planned major maintenance outages. As previously announced, the
Middletown blast furnace underwent a planned seven-day maintenance outage
during the second quarter of 2013. This was the first major maintenance outage
to the blast furnace since the furnace was relined in 2009. The company
recorded expenses of $21.6 million during the second quarter of 2013 for
planned outages, compared to $1.0 million in expenses in each of the second
quarterof 2012 and the first quarter of 2013. The 2013 second quarter results
also include expenses of approximately $6.2 million, or pre-tax $0.05 per
share, for costs related to an unplanned blast furnace outage at the company's
Middletown (OH) Works, as discussed more fully below.

The 2013 second quarter results include a LIFO credit of $12.4 million,
compared to a LIFO credit of $18.3 million in the second quarter of 2012 and a
LIFO credit of $6.0 million for the first quarter of 2013.

"Excluding the blast furnace repair costs, both planned and unplanned, AK
Steel's second quarter performance improved compared to our first quarter,"
said James L. Wainscott, Chairman, President and CEO of AK Steel. "We will
continue to drive the company for improved results on every front on behalf of
our shareholders and all of our constituents."

The company ended the second quarter of 2013 with total liquidity of $905.3
million, consisting of cash and cash equivalents and $857.7 million of
availability under the company's revolving credit facility. There were $40.0
million of outstanding borrowings under the company's revolving credit
facility as of June 30, 2013.

Six-Month Results
For the first six months of 2013, the company reported a net loss of $50.3
million, or $0.37 per diluted share. For the corresponding six months of 2012,
the company reported a net loss of $736.0 million, or $6.66 per diluted share.
The results for the first six months of 2012 include a non-cash income tax
charge of $735.6 million, or $6.66 per diluted share, as a result of a change
in a deferred tax asset valuation allowance in the second quarter.

Sales for the first six months of 2013 were $2,774.3 million compared to
$3,047.1 million in the first half of 2012. Shipments for the first half of
2013 were 2,613,500 tons compared to 2,661,700 tons in the first half of 2012.
The company recorded expenses of $22.6 million during the first six months of
2013 for planned outages, compared to expenses of $1.6 million during the
first six months of 2012.

The company reported adjusted EBITDA of $114.3 million, or $44 per ton, for
the first six months of 2013, compared to $137.2 million, or $52 per ton, for
the first six months of 2012. The decrease in earnings in the first six months
of 2013 was primarily a result of higher planned maintenance outage costs.

Middletown Works Unplanned Blast Furnace Outage
As previously announced, the company's blast furnace at its Middletown (OH)
Works experienced an unexpected mechanical failure in the charging apparatus
internal to the furnace on June 22, 2013. The company executed its contingency
plan and the blast furnace was taken off-line to prevent any damage to the
furnace and to position it for start-up once the repairs were completed.
During the period in which the blast furnace was off-line, the company
utilized its existing inventory together with its Butler (PA) Works electric
arc furnace and its Ashland (KY) Works blast furnace and purchased some
merchant carbon slabs to help service its customers. The company restarted the
blast furnace on July 12, 2013.

The company's second quarter results for 2013 included a charge of $6.2
million for the unplanned outage. The company maintains property damage and
business interruption insurance, and it currently expects that its total
uninsured portion of losses in the second half of 2013 will be between $12.0
million and $17.0 million.

Third Quarter 2013 Outlook
Consistent with its current practice, the company said that it will provide
detailed guidance for its third quarter results in September. However, the
company noted that it expects to incur additional expenses related to the
unplanned Middletown blast furnace outage in the third quarter. Further, the
timing and amount of any insurance recovery cannot be accurately predicted at
this time and could occur after the third quarter, thus resulting in a
mismatch of expenses and insurance recovery.

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, including
those estimates with respect to the timing and cost of repairing the blast
furnace at the Middletown (OH) Works, 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, 2012, 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 6,100 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, controls
and is developing 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.



AK STEEL HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars and shares in millions, except per share and per ton data)
                                Three Months Ended      Six Months Ended
                                June 30,                June 30,
                                2013        2012        2013        2012
Shipments (000 tons)            1,323.7     1,335.8     2,613.5     2,661.7
Selling price per ton           $ 1,061     $ 1,152     $ 1,061     $ 1,145
Net sales                       $ 1,404.5   $ 1,538.4   $ 2,774.3   $ 3,047.1
Cost of products sold           1,309.2     1,392.4     2,561.5     2,801.4
Selling and administrative      50.2        50.8        101.8       106.6
expenses
Depreciation                    47.9        48.4        96.5        96.7
Pension and OPEB expense        (16.5)      (9.9)       (32.4)      (18.4)
(income)
 Total operating costs        1,390.8     1,481.7     2,727.4     2,986.3
Operating profit                13.7        56.7        46.9        60.8
Interest expense                32.0        21.8        63.0        38.0
Other income (expense)          2.5         (4.7)       4.3         (3.8)
Income (loss) before income     (15.8)      30.2        (11.8)      19.0
taxes
Income tax provision            9.7         747.8       6.9         743.5
Net income (loss)               (25.5)      (717.6)     (18.7)      (724.5)
Less: Net income attributable   14.9        6.6         31.6        11.5
to noncontrolling interests
Net income (loss) attributable
to AK Steel Holding             $ (40.4)    $ (724.2)   $ (50.3)    $ (736.0)
Corporation
Basic and diluted earnings per
share:
 Net income (loss)
attributable to AK Steel        $ (0.30)    $ (6.55)    $ (0.37)    $ (6.66)
Holding Corporation
Weighted-average shares
outstanding:
 Basic                        135.8       110.2       135.8       110.1
 Diluted                      135.8       110.2       135.8       110.1
Dividends declared and paid     $ —         $ 0.05      $ —         $ 0.10
per share



AK STEEL HOLDING CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in millions, except per share amounts)
                                                 June 30,    December 31, 2012
                                                 2013
ASSETS
Current assets:
Cash and cash equivalents                        $ 58.4      $    227.0
Accounts receivable, net                         515.8       473.9
Inventory, net                                   677.0       609.2
Other current assets                             105.0       132.6
 Total current assets                      1,356.2     1,442.7
Property, plant and equipment                    5,966.7     5,943.9
Accumulated depreciation                         (4,028.0)   (3,931.6)
Property, plant and equipment, net               1,938.7     2,012.3
Other non-current assets                         477.8       448.1
TOTAL ASSETS                                     $ 3,772.7   $    3,903.1
LIABILITIES AND EQUITY (DEFICIT)
Current liabilities:
Short-term borrowings under credit facility      $ 40.0      $    —
Accounts payable                                 595.3       538.3
Accrued liabilities                              141.7       164.8
Current portion of long-term debt                0.7         0.7
Current portion of pension and other             105.2       108.6
postretirement benefit obligations
 Total current liabilities                 882.9       812.4
Long-term debt                                   1,414.7     1,411.2
Pension and other postretirement benefit         1,548.1     1,661.7
obligations
Other non-current liabilities                    108.0       108.8
TOTAL LIABILITIES                                3,953.7     3,994.1
Equity (deficit):
 Common stock, authorized 200,000,000 shares
of $.01 par value each; issued 149,610,870 and
149,094,571 shares in 2013 and 2012;             1.5         1.5
outstanding 136,301,925 and 135,944,172 shares
in 2013 and 2012
Additional paid-in capital                       2,075.4     2,069.7
 Treasury stock, common shares at cost,
13,308,945 and 13,150,399 shares in 2013 and     (174.0)     (173.3)
2012
Accumulated deficit                              (2,454.6)   (2,404.3)
Accumulated other comprehensive income (loss)    (47.5)      1.1
 Total stockholders' equity (deficit)      (599.2)     (505.3)
Noncontrolling interests                         418.2       414.3
TOTAL EQUITY (DEFICIT)                           (181.0)     (91.0)
TOTAL LIABILITIES AND EQUITY (DEFICIT)           $ 3,772.7   $    3,903.1



AK STEEL HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in millions)
                                                         Six Months Ended
                                                         June 30,
                                                         2013       2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)                                        $ (18.7)   $ (724.5)
Depreciation                                             89.6       90.0
Depreciation—SunCoke Middletown                          6.9        6.7
Amortization                                             10.7       9.6
Deferred income taxes                                    5.5        735.0
Pension and OPEB expense (income)                        (32.4)     (18.4)
Contributions to pension trust                           (71.3)     (170.2)
Other postretirement benefit payments                    (32.5)     (33.2)
Changes in working capital                               (62.7)     (240.1)
Changes in working capital—SunCoke Middletown            1.1        5.2
Other operating items, net                               (0.7)      29.8
 Net cash flows from operating activities          (104.5)    (310.1)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital investments                                      (31.0)     (17.9)
Capital investments—SunCoke Middletown                   (1.4)      (17.6)
Investments in acquired businesses                       (50.0)     —
Other investing items, net                               4.8        0.7
 Net cash flows from investing activities          (77.6)     (34.8)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings under credit facility                     40.0       75.0
Proceeds from issuance of long-term debt                 31.9       373.3
Redemption of long-term debt                             (27.0)     (73.7)
Debt issuance costs                                      (2.4)      (8.4)
Purchase of treasury stock                               (0.7)      (1.7)
Common stock dividends paid                              —          (11.0)
 SunCoke Middletown distributions to noncontrolling    (27.6)     (12.8)
interest owners
Other financing items, net                               (0.7)      (0.4)
 Net cash flows from financing activities          13.5       340.3
Net increase (decrease) in cash and cash equivalents     (168.6)    (4.6)
Cash and cash equivalents, beginning of period           227.0      42.0
Cash and cash equivalents, end of period                 $ 58.4     $ 37.4



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 (loss). The company has made these
adjustments because management believes that doing so enhances the
understanding of the company's financial results.

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. For purposes of this report, "adjusted
EBITDA" is defined as net income (loss) attributable to AK Holding, plus
income tax provision (benefit), net interest expense, depreciation and
amortization. Adjusted EBITDA is presented because the company believes it is
a useful indicator of its performance and ability to meet debt service and
capital expenditure requirements. It is not, however, intended as an
alternative measure of operating results or cash flow from operations as
determined in accordance with generally accepted accounting principles.
Adjusted EBITDA is not necessarily comparable to similarly titled measures
used by other companies.

Management believes that reporting adjusted net income (loss), as a total and
on a per share basis, which is defined as net income (loss) with the charge
for deferred tax asset valuation allowance excluded, more clearly reflects the
company's current operating results and provides investors with a better
understanding of the company's overall financial performance. In addition, the
adjusted results, although not a financial measure under GAAP, 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 which otherwise would distort the comparison. Also, although the tax
valuation charge reduces reported net income (loss), it is a non-cash charge.

Management views the reported results of adjusted EBITDA and adjusted net
income (loss) as important operating performance measures and believes that
the GAAP financial measure most directly comparable is net income (loss) (as a
total and on a per share basis). Adjusted EBITDA and adjusted net income
(loss) are used by management as a supplemental financial measure to evaluate
the performance of the business. Management believes that these non-GAAP
measures, when analyzed in conjunction with the company's GAAP results and the
accompanying reconciliations, provide additional insight into the financial
trends of the company's business versus the GAAP results alone.

Neither current nor potential investors in the company's securities should
rely on the adjusted EBITDA and adjusted net income (loss) results as a
substitute for any GAAP financial measure and the company encourages current
and potential investors to review the reconciliations of adjusted EBITDA and
adjusted net income (loss) to the comparable GAAP financial measure.

The following schedules reflect the reconciliations of the non-GAAP quarterly
financial measures discussed in this release:



Reconciliation of Adjusted EBITDA
                    Three Months Ended     Six Months Ended       Three Months
                                                                  Ended
                    June 30,               June 30,               Mar 31,
(dollars in         2013       2012        2013       2012        2013
millions)
Net income (loss)
attributable to AK  $ (40.4)   $ (724.2)   $ (50.3)   $ (736.0)   $   (9.9)
Holding
Net income
attributable to     14.9       6.6         31.6       11.5        16.7
noncontrolling
interests
Income tax
provision           9.7        747.8       6.9        743.5       (2.8)
(benefit)
Interest expense    32.0       21.8        63.0       38.0        31.0
Interest income     (0.2)      (0.1)       (0.9)      (0.2)       (0.7)
Depreciation        47.9       48.4        96.5       96.7        48.6
Amortization        2.0        2.3         6.1        9.2         4.1
EBITDA              65.9       102.6       152.9      162.7       87.0
Less: EBITDA of
noncontrolling      18.4       14.3        38.6       25.5        20.2
interests (a)
Adjusted EBITDA     $ 47.5     $ 88.3      $ 114.3    $ 137.2     $   66.8

  (a) The reconciliation of EBITDA of noncontrolling interests to net income
      attributable to noncontrolling interests is as follows:



                            Three Months Ended  Six Months Ended  Three Months
                                                                  Ended
                            June 30,            June 30,          Mar 31,
   (dollars in millions)    2013       2012     2013     2012     2013
   Net income attributable
   to noncontrolling        $  14.9    $ 6.6    $ 31.6   $ 11.5   $   16.7
   interests
   Income tax provision     —          4.1      —        7.1      —
   Depreciation             3.5        3.6      7.0      6.9      3.5
   EBITDA of
   noncontrolling           $  18.4    $ 14.3   $ 38.6   $ 25.5   $   20.2
   interests







Reconciliation of Adjusted Net Income (Loss)
                    Three Months Ended     Six Months Ended       Three Months
                                                                  Ended
                    June 30,               June 30,               Mar 31,
(dollars in
millions, except    2013       2012        2013       2012        2013
per share)
Reconciliation to
Net Income (Loss)
Attributable to AK
Steel Holding
Adjusted net
income (loss)
attributable to AK  $ (19.7)   $ 11.4      $ (28.5)   $ (0.4)     $  (8.8)
Steel Holding
Corporation
 Non-cash income
tax charge from
change in deferred  (20.7)     (735.6)     (21.8)     (735.6)     (1.1)
tax asset
valuation
allowance
Net income (loss)
attributable to AK
Steel Holding       $ (40.4)   $ (724.2)   $ (50.3)   $ (736.0)   $  (9.9)
Corporation, as
reported
Reconciliation to
Basic and Diluted
Earnings (Losses)
per Share
Adjusted basic and
diluted earnings    $ (0.15)   $ 0.10      $ (0.21)   $ —         $  (0.07)
(losses) per share
 Non-cash income
tax charge from
change in deferred  (0.15)     (6.65)      (0.16)     (6.66)      —
tax asset
valuation
allowance
Basic and diluted
earnings (losses)   $ (0.30)   $ (6.55)    $ (0.37)   $ (6.66)    $  (0.07)
per share, as
reported



AK STEEL HOLDING CORPORATION
STEEL SHIPMENTS
(Unaudited)
(Tons in thousands)
                                    Three Months Ended    Six Months Ended
                                    June 30,              June 30,
                                    2013       2012       2013       2012
Tons Shipped by Product
Stainless/electrical                215.1      227.5      419.5      442.4
Coated                              639.1      597.9      1,216.2    1,181.1
Cold-rolled                         262.1      277.1      539.5      563.1
Tubular                             31.5       35.7       63.0       72.0
Subtotal value-added shipments      1,147.8    1,138.2    2,238.2    2,258.6
Hot-rolled                          151.8      171.6      324.1      342.1
Secondary                           24.1       26.0       51.2       61.0
Subtotal non value-added shipments  175.9      197.6      375.3      403.1
Total shipments                     1,323.7    1,335.8    2,613.5    2,661.7
Shipments by Product (%)
Stainless/electrical                16.2    %  17.0    %  16.1    %  16.6    %
Coated                              48.3    %  44.8    %  46.5    %  44.4    %
Cold-rolled                         19.8    %  20.7    %  20.6    %  21.2    %
Tubular                             2.4     %  2.7     %  2.4     %  2.7     %
Subtotal value-added shipments      86.7    %  85.2    %  85.6    %  84.9    %
Hot-rolled                          11.5    %  12.8    %  12.4    %  12.9    %
Secondary                           1.8     %  2.0     %  2.0     %  2.2     %
Subtotal non value-added shipments  13.3    %  14.8    %  14.4    %  15.1    %
Total shipments                     100.0   %  100.0   %  100.0   %  100.0   %



SOURCE AK Steel

Website: http://www.aksteel.com
Contact: Media, Michael P. Wallner, General Manager, Communications and PR,
(513) 425-2688, or Investors, Albert E. Ferrara, Jr., Senior Vice President,
Corporate Strategy and Investor Relations, (513) 425-2888