AK Steel Provides First Quarter 2014 Guidance

                AK Steel Provides First Quarter 2014 Guidance

PR Newswire

WEST CHESTER, Ohio, March 21, 2014

WEST CHESTER, Ohio, March 21, 2014 /PRNewswire/ -- AK Steel (NYSE: AKS) today
provided guidance for its first quarter 2014 financial results. AK Steel said
it expects to report a net loss of $0.44 to $0.49 per diluted share of common
stock. The expected net loss was driven principally by several significant
factors during the first quarter that the company does not expect to continue
during the rest of the year, including higher energy costs related to the
extreme cold weather, an unplanned blast furnace outage, the acceleration of a
planned blast furnace outage, and a charge for a tentative legal settlement.

Shipments

AK Steel expects shipments of approximately 1,250,000 to 1,275,000 tons in the
first quarter of 2014, an approximate 10% to 12% decrease from 1,420,000 tons
in the fourth quarter of 2013. The reduction in shipments for the first
quarter is attributable principally to the effects of the unplanned outage at
the company's Ashland Works blast furnace (described below) resulting in a
decline in shipments of carbon steel to the spot market and a decline in
shipments of electrical steel, partially offset by higher automotive
shipments.

Pricing

The company expects its average selling price for the first quarter of 2014 to
increase by approximately 6% to approximately $1,095 from its average selling
price of $1,031 per ton in the fourth quarter of 2013. The increase in
average selling price is primarily due to a richer shipment mix of value-added
products.

Summary of Significant Cost Drivers

The company said that the extreme cold weather conditions in the United States
during the first quarter of 2014 impacted its operations and caused severe
spikes in energy costs. More specifically, the company expects the cost of
natural gas and electricity to increase by approximately $30 million in the
first quarter of 2014 compared to such costs in the fourth quarter of 2013. A
second major driver of the company's projected loss for the first quarter was
the previously disclosed incident in late February at the company's Ashland
Works blast furnace that temporarily resulted in an unplanned outage of that
furnace. The company immediately began repairs and the blast furnace resumed
operations in March. The company expects to incur approximately $18 million
in the first quarter related to that unplanned outage at Ashland Works. In
addition, the company expects to incur approximately $29 million for planned
outage costs for the first quarter of 2014 compared to $1.5 million in the
fourth quarter of 2013. The higher planned outage costs in the first quarter
of 2014 include the acceleration of the majority of a previously disclosed
planned maintenance outage at Ashland Works that previously had been scheduled
for the second quarter of 2014. The company does not have any other
significant outages planned for the second quarter of 2014. During the first
quarter, the company also expects to incur a charge for a tentative settlement
of pending litigation in the amount of $5.8 million. In addition to these
four significant cost drivers, the company said that it also expects to incur
higher pre-tax costs in the first quarter of 2014 compared to the fourth
quarter of 2013 from higher iron ore and carbon scrap costs.

Income Taxes

AK Steel said that it expects to record an income tax benefit at an effective
tax rate of approximately 29% for the first quarter of 2014.

Forward-Looking Statements

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 the projected loss
related to the unplanned blast furnace outage at its Ashland Works and higher
energy costs associated with the extreme cold weather conditions in the first
quarter; 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; 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; 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
computer crime; 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 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, produces
metallurgical coal from 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

Website: http://www.aksteel.com
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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