AK Steel Applauds Enactment of Highway and Transportation Funding Act

    AK Steel Applauds Enactment of Highway and Transportation Funding Act

Interest Rate Stabilization Provision to Benefit AK Steel and Its Retirees

PR Newswire

WEST CHESTER, Ohio, Aug. 8, 2014

WEST CHESTER, Ohio, Aug.8, 2014 /PRNewswire/ --AK Steel (NYSE: AKS) said
today that it applauds the enactment of the Highway and Transportation Funding
Act, legislation that is vital to maintaining and improving America's
infrastructure – much of which is made with steel. In addition to bolstering
the Highway Trust Fund, the legislation contains an interest rate
stabilization provision for companies that sponsor defined benefit employee
pension plans, such as AK Steel. 

The pension stabilization provision is meaningful to AK Steel and its retirees
in several ways. For the company, the provision ensures that its pension
funding obligations will not dramatically increase when interest rates are
low, which can free up capital for the good of the business. For its
retirees, the provision offers a sense of security, as it continues to require
companies to meet certain funding requirements even when interest rates

"We appreciate the important work done by Congress and the President to pass
the Highway and Transportation Funding Act, legislation that is good for our
country and for AK Steel," said James L. Wainscott, Chairman, President and
CEO of AK Steel. "The legislation will allow AK Steel to direct capital into
the business without sacrificing our ability to continue to meet our pension
funding obligations."

Steelmaking is a capital-intensive business, and low interest rates have
significantly increased AK Steel's pension obligation in recent years. As a
result of the stabilization provision, and based on current actuarial
assumptions, the company expects its pension contributions to decrease by
approximately $65 million in 2015, thus reducing its required pension
contributions for 2015 from a previously estimated $100 million to a current
estimate of approximately $35 million. For 2016, AK Steel currently estimates
its pension contributions to be about $15 million, down from a previous
estimate of approximately $50 million, for a decrease of $35 million.

AK Steel, including its predecessor company, Armco, has sponsored defined
benefit employee pension plans for more than 60 years. In that time, the
company has never missed a contribution to its pension trust fund nor a
pension payment to generations of retirees and their survivors. From 2005 to
date, AK Steel has contributed approximately $1.9 billion in cash
contributions to its pension trust fund. As of June 30, 2014, the company
estimated that its pension plan is approximately 87 percent funded based on
current actuarial assumptions. 

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 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 6,500 men and women at seven steel plants and
two tube manufacturing plants across four states: Indiana, Kentucky, Ohio and
Pennsylvania. The company also has interests in iron ore through its
Magnetation LLC joint venture and in metallurgical coal through its AK Coal
subsidiary. Additional information about AK Steel is available at


Website: http://www.aksteel.com
Contact: Media - Michael P. Wallner, General Manager, Communications and PR,
(513) 425-2688; Investors - Roger K. Newport, Sr. Vice President, Finance and
Chief Financial Officer, (513) 425-5270
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