AK Steel Provides Third Quarter 2013 Guidance

                AK Steel Provides Third Quarter 2013 Guidance

PR Newswire

WEST CHESTER, Ohio, Sept. 19, 2013

WEST CHESTER, Ohio, Sept.19, 2013 /PRNewswire/ --AK Steel (NYSE: AKS) today
provided guidance for its third quarter of 2013 financial results. AK Steel
said it expects to incur a net loss of $0.22 to $0.27 per diluted share of
common stock, which includes a loss of approximately $0.09 per diluted share
related to the previously disclosed unplanned Middletown Works blast furnace
outage described below. The principal assumptions and other factors driving
this estimate are set forth below.

Shipments
AK Steel expects shipments of approximately 1,240,000 to 1,260,000 tons in the
third quarter of 2013 compared to shipments of 1,323,700 tons in the second
quarter of 2013, a decrease of approximately 5% to 6%. The reduction in
shipments from the second quarter is attributable principally to the effects
of the unplanned outage at the company's Middletown Works blast furnace and to
a seasonal reduction in shipments to the automotive market. As a result of
the outage, the company's melt production during the quarter has been reduced,
resulting in a delay of shipments to some carbon spot market customers and an
overall reduction in shipments during the quarter. 

Pricing
The company expects its average selling price for the third quarter of 2013 to
increase slightly to about $1,065 per ton from its average selling price of
$1,061 per ton for the second quarter of 2013. The expected increase in
average selling price is primarily due to a more favorable mix of value-added
products compared to the previous quarter, largely offset by lower raw
material surcharges and the effect of the delayed shipments to customers
resulting from the unplanned blast furnace outage. The company has continued
to honor its commitments to customers for lower-priced orders placed prior to
the outage for carbon spot market shipments and, as a result of the
limitations on its capacity for shipments caused by the outage, the company
has not been able to realize the full benefit of price increases in the carbon
spot market which occurred during the third quarter.

Planned Maintenance
Total planned maintenance outage costs are expected to be about $5 million in
the third quarter compared to $21.6 million in the second quarter,
representing a decrease of approximately $17 million in costs from the prior
quarter.

Unplanned Blast Furnace Outage Effect and Insurance Recovery
The company's projected loss for the third quarter includes approximately $12
million, or $0.09 per diluted share, related to the unplanned blast furnace
outage after an expected partial insurance recovery. As previously disclosed,
the company's losses attributable to the unplanned blast furnace outage are
partially covered by property damage and business interruption insurance. The
company expects to recognize approximately $14 million in insurance recoveries
during the third quarter related to the unplanned blast furnace outage. The
company anticipates there will be some additional losses incurred and
insurance recoveries recorded in the fourth quarter.

Income Taxes
AK Steel said that it expects to record a non-cash income tax expense of
approximately $7 million, or $0.05 per diluted share of common stock, for the
third quarter of 2013 using the discrete tax method. In the second quarter of
2013, the company recorded a tax provision of $9.7 million, or $0.07 per
diluted share. The company's income tax provision is primarily related to
changes in the company's LIFO reserve, which results in a tax valuation
allowance adjustment related to the company's deferred tax assets, and could
affect this estimate.

Forward-Looking Statements
Some of the statements in this release are intended to be, and hereby are
identified as "forward-looking statements" for purposes of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. The
company cautions readers that such forward-looking statements involve risks
and uncertainties that could cause actual results to differ materially from
those currently expected by management, including the projected loss related
to the unplanned blast furnace outage and the amount of its related insurance
recoveries, as well as those risks and uncertainties discussed in AK Holding's
Annual Report on Form 10-K for the year ended December 31, 2012, its
subsequently filed 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.

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.

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.



SOURCE AK Steel

Contact: Media, Michael P. Wallner, General Manager, Communications and PR,
(513) 425-2688, or Investors, Roger K. Newport, Vice President, Finance and
Chief Financial Officer, (513) 425-5270
 
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