Document
false0000918160 0000918160 2019-07-29 2019-07-29


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

DATE OF REPORT - July 29, 2019
(Date of Earliest Event Reported)
AK STEEL HOLDING CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
 
1-13696
 
31-1401455
(State of Incorporation)
 
(Commission File No.)
 
(I.R.S. Employer Identification No.)

9227 Centre Pointe Drive, West Chester, Ohio 45069
(Address of principal executive offices, including zip code)

(513) 425-5000
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Solicitation material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Trading Symbol(s)
Name of Each Exchange on Which Registered
Common Stock $0.01 Par Value
AKS
The New York Stock Exchange





Item 2.02
Results of Operations and Financial Condition.
 
 
On July 29, 2019, AK Steel Holding Corporation issued a press release, a copy of which is attached hereto as Exhibit No. 99.1 and incorporated by reference herein, regarding its financial results for the second quarter of 2019.

Item 7.01
Regulation of FD Disclosures.
 
 
AK Steel has prepared presentation materials (the “Investor Presentation”) that management intends to use with its earnings conference call for its second quarter 2019 financial results, to be held at 8:30 a.m. Eastern Time on July 29, 2019, and from time to time thereafter in presentations regarding AK Steel. AK Steel may use the Investor Presentation, possibly with modifications, in presentations to current and potential investors, as well as others with an interest in AK Steel and its business.

The information contained in the Investor Presentation is summary information that should be considered in the context of materials filed with, or furnished to, the Securities and Exchange Commission and other public announcements that AK Steel may make by news release or otherwise from time to time.  The Investor Presentation speaks only as of the date of this Current Report on Form 8-K.  While AK Steel may elect to update the Investor Presentation in the future to reflect events and circumstances occurring or existing after the date of this Current Report, AK Steel specifically disclaims any obligation to do so.

By filing this Current Report on Form 8-K and furnishing the Investor Presentation, AK Steel makes no admission or representation as to the materiality of any information in this Current Report or the Investor Presentation.  The Investor Presentation may contain forward-looking statements.  See Page 3 of the Investor Presentation for a discussion of certain forward-looking statements that may be included therein and the risks and uncertainties related thereto.

The Investor Presentation is furnished as Exhibit 99.2 hereto and is incorporated herein by reference.


Item 9.01
Financial Statements and Exhibits.
 
 
 
 
(d)
Exhibit:
 
 
 
 
 
 
Press Release issued on July 29, 2019
 
 
Investor Presentation July 2019
 
 
101.Ins
XBRL Instance Document – the XBRL Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
 
 
101.Sch
XBRL Taxonomy Extension Schema Document
 
 
101.Cal
XBRL Taxonomy Extension Calculation Linkbase Document
 
 
101.Def
XBRL Taxonomy Extension Definition Linkbase Document
 
 
101.Lab
XBRL Taxonomy Extension Label Linkbase Document
 
 
101.Pre
XBRL Taxonomy Extension Presentation Linkbase Document







SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
AK STEEL HOLDING CORPORATION
 
 
 
 
 
 
 
 
 
By:
/s/ Joseph C. Alter
 
 
Joseph C. Alter
 
 
Corporate Secretary
 
 
 
 
Dated:
July 29, 2019



Exhibit
 
 
EXHIBIT 99.1
 
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=13027804&doc=9
        News Release
 
 
 
 
Contacts:
 
Media – Lisa H. Jester, Corporate Manager, Communications and Public Relations (513) 425-2510
 
Investors – Douglas O. Mitterholzer, General Manager, Investor Relations (513) 425-5215
 

AK Steel Announces Second Quarter 2019 Financial Results

WEST CHESTER, OH, July 29, 2019 – AK Steel (NYSE: AKS) today reported its financial results for the second quarter of 2019.

Second Quarter 2019 Highlights
Net income of $66.8 million, or $0.21 per diluted share; up 18% from a year ago
Adjusted EBITDA of $151.5 million, or 9.0% of sales; up 2% from a year ago
Reduced borrowings by $95.0 million

“We reported solid earnings for the second quarter, despite a dramatic decline in carbon spot market pricing from a year ago. This reflects our strategy to focus on value-added products with fixed-price contracts and to deemphasize sales to the volatile commodity spot market,” said Roger K. Newport, Chief Executive Officer. “As a result, we generated strong free cash flow that allowed us to meaningfully reduce debt in the quarter.”
AK Steel reported net income of $66.8 million, or $0.21 per diluted share of common stock, for the second quarter of 2019. For the second quarter of 2018, net income was $56.6 million, or $0.18 per diluted share. The company’s adjusted EBITDA (as defined in the “Non-GAAP Financial Measures” section below) was $151.5 million, or 9.0% of net sales, for the second quarter of 2019. Adjusted EBITDA increased 2% from $148.4 million, or 8.5% of net sales, in the second quarter a year ago. Adjusted EBITDA in the recent second quarter included mark-to-market gains of $35.4 million from iron ore derivatives, about half of which will offset expected higher costs for iron ore later in the year. For the same period in 2018, the company recorded mark-to-market gains of $2.1 million. Not included in the financial results for the second quarter of 2019 were realized gains of $8.7 million for iron ore derivatives contracts that settled during the period for which the company had recognized mark-to-market gains in its financial results in prior quarters, compared to $9.2 million for the same period in 2018.
Net sales for the recent second quarter were $1.7 billion, a 4% decrease compared to the second quarter of 2018. The decrease was primarily due to lower shipments to the automotive market, as expected, and lower spot market selling prices, partly offset by higher selling prices to the automotive market.
The company reported an increase in liquidity to $1,079.1 million at the end of the second quarter, consisting of cash and cash equivalents and $1,037.1 million of availability under the company’s revolving credit facility. The company repaid $95.0 million of borrowings under the credit facility during the quarter and reported outstanding borrowings under the credit facility of $285.0 million at June 30, 2019.


- more -


2

(Dollars in millions, except per share and per ton data)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
 
Flat-rolled steel shipments (000 tons)
 
1,391.4

 
1,439.8

 
2,779.8

 
2,870.7

Selling price per flat-rolled steel ton
 
$
1,102

 
$
1,101

 
$
1,107

 
$
1,073

 
 
 
 
 
 
 
 
 
Net sales
 
$
1,680.5

 
$
1,746.6

 
$
3,378.2

 
$
3,405.5

Operating profit
 
106.6

 
99.5

 
147.8

 
163.1

Net income attributable to AK Steel Holding Corporation
 
66.8

 
56.6

 
62.3

 
85.3

Adjusted net income attributable to AK Steel Holding Corporation (a)
 
66.8

 
56.6

 
139.7

 
85.3

Adjusted EBITDA (a)
 
151.5

 
148.4

 
312.4

 
267.1

 
 
 
 
 
 
 
 
 
Net income per diluted share attributable to AK Steel Holding Corporation
 
$
0.21

 
$
0.18

 
$
0.20

 
$
0.27

Adjusted net income per diluted share attributable to AK Steel Holding Corporation (a)
 
0.21

 
0.18

 
0.44

 
0.27

(a)
Adjustments have been made to the six months ended June 30, 2019 for $77.4 million of charges related to the company’s announcement of its intention to close its Ashland Works facility, as previously disclosed. The charge was primarily for termination of certain take-or-pay supply agreements and employee-related costs.

Outlook
Based on the change in hot-rolled carbon spot market pricing from approximately $690 per ton in April to about $555 per ton, the company is updating its annual guidance. The company’s annual guidance had indicated that for every $10 change in the carbon hot-rolled coil spot market price, annual earnings would be impacted by $5 to $7 million. Accordingly, the company now expects net income to be in the range of $41 to $61 million, or $0.13 to $0.20 per diluted share. Excluding the impact of the Ashland Works closure, adjusted net income is expected to be in the range of $118 to $138 million, or $0.37 to $0.44 per diluted share, and adjusted EBITDA to be in the range of $470 to $490 million. This updated guidance aligns with the company’s previous guidance.
Other outlook items include:
The company’s adjusted net income and adjusted EBITDA guidance exclude the effects of the Ashland Works charge of $77.4 million recorded in the first quarter of 2019, as discussed above.
Major maintenance outage expenditures in 2019 are still expected to total in the range of $70 to $80 million, with a significant portion of the expenditures occurring in the fourth quarter.
The other annual guidance items remain unchanged from the company’s April guidance.
The foregoing outlook is based on AK Steel’s current estimates and may change based on business conditions and other factors. There are many other items that could affect the company’s 2019 results, as outlined in the Forward-Looking Statements below, including developments in the domestic and global economies, in the company’s business, in trade actions and the imposition of tariffs, and in the businesses of the company’s customers, suppliers and competitors.

Second Quarter 2019 Earnings Conference Call
AK Steel will provide live listening access on its website for the company’s earnings conference call on July 30, 2019 at 8:30 a.m. Eastern Time. A link to the webcast is on the company’s home page at www.aksteel.com. Presentation slides will also be available on the webcast link and under the Investor Presentations section on the website. The webcast will be archived on the company’s website for three months and will be accessible from the Investor News and Events section.

AK Steel
AK Steel is a leading producer of flat-rolled carbon, stainless and electrical steel products, primarily for the automotive, infrastructure and manufacturing, including electrical power, and distributors and converters markets. Through its subsidiaries, the company also provides customer solutions with carbon and stainless steel tubing

- more -


3

products, die design and tooling, and hot- and cold-stamped components. Headquartered in West Chester, Ohio (Greater Cincinnati), the company has approximately 9,500 employees at manufacturing operations in the United States, Canada and Mexico, and facilities in Western Europe. Additional information about AK Steel is available at www.aksteel.com.

Forward-Looking Statements
Certain statements made or incorporated by reference in this earnings release reflect management’s estimates and beliefs and are intended to be “forward-looking statements” identified in 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 forward-looking statements.
The company cautions readers that forward-looking statements reflect the company’s current beliefs and judgments, but are not guarantees of future performance or outcomes. They are based on a number of assumptions and estimates that are inherently affected by economic, competitive, regulatory, and operational risks and uncertainties and contingencies that are beyond the company’s control. They are also based upon assumptions about future business decisions and conditions that may change.
Forward-looking statements are only predictions and involve risks and uncertainties, resulting in the possibility that actual events or performance will differ materially from such predictions as a result of certain risk factors. Such factors that could cause the company’s actual results and financial condition to differ materially from the results contemplated by such forward-looking statements include reduced selling prices, shipments and profits associated with a highly competitive and cyclical industry; domestic and global steel overcapacity; risks related to U.S. government actions on trade agreements and treaties, laws, regulations or policies affecting trade; changes in the cost of raw materials, supplies 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 or key suppliers; the company’s significant proportion of sales to the automotive market; reduced demand in key product markets due to competition from aluminum or other alternatives to steel; excess inventory of raw materials; supply chain disruptions or poor quality of raw materials or supplies; production disruption or reduced production levels; the company’s healthcare and pension obligations; not reaching new labor agreements on a timely basis; major litigation, arbitrations, environmental issues and other contingencies; regulatory compliance and changes; climate change and greenhouse gas emissions; conditions in the financial, credit, capital and banking markets; the company’s use of derivative contracts to hedge commodity pricing volatility; potential permanent idling of facilities; inability to fully realize benefits of margin enhancement initiatives; information technology security threats, cybercrime and exposure of private information; the company’s failure to achieve expected benefits of the Precision Partners acquisition; and changes in tax laws and regulations; as well as those risks and uncertainties discussed in more detail in the company’s Annual Report on Form 10-K for the year ended December 31, 2018, and its subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with or furnished to the Securities and Exchange Commission. As such, the company cautions readers not to place undue reliance on forward-looking statements, which speak only to the company’s plans, assumptions and expectations as of the date hereof. The company undertakes no obligation to publicly update any forward-looking statement, except as required by law.

- more -


4

AK STEEL HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars and shares in millions, except per share and per ton data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
Flat-rolled steel shipments (000 tons)
 
1,391.4

 
1,439.8

 
2,779.8

 
2,870.7

Selling price per flat-rolled steel ton
 
$
1,102

 
$
1,101

 
$
1,107

 
$
1,073

 
 
 
 
 
 
 
 
 
Net sales
 
$
1,680.5

 
$
1,746.6

 
$
3,378.2

 
$
3,405.5

 
 
 
 
 
 
 
 
 
Cost of products sold
 
1,449.0

 
1,512.7

 
2,914.4

 
2,976.4

Selling and administrative expenses
 
75.3

 
79.5

 
151.9

 
156.2

Depreciation
 
49.6

 
54.9

 
100.0

 
109.8

Ashland Works closure
 

 

 
64.1

 

Total operating costs
 
1,573.9

 
1,647.1

 
3,230.4

 
3,242.4

Operating profit
 
106.6

 
99.5

 
147.8

 
163.1

Interest expense
 
37.1

 
37.9

 
75.0

 
75.5

Pension and OPEB (income) expense
 
(6.9
)
 
(10.0
)
 
(0.4
)
 
(20.0
)
Other (income) expense
 
(4.5
)
 
(0.2
)
 
(17.2
)
 
(4.1
)
Income before income taxes
 
80.9

 
71.8

 
90.4

 
111.7

Income tax expense (benefit)
 
1.0

 
(0.5
)
 
2.4

 
(5.4
)
Net income
 
79.9

 
72.3

 
88.0

 
117.1

Less: Net income attributable to noncontrolling interests
 
13.1

 
15.7

 
25.7

 
31.8

Net income attributable to AK Steel Holding Corporation
 
$
66.8

 
$
56.6

 
$
62.3

 
$
85.3

 
 
 
 
 
 
 
 
 
Net income per share attributable to AK Steel Holding Corporation:
 
 
 
 
 
 
 
 
Basic
 
$
0.21

 
$
0.18

 
$
0.20

 
$
0.27

Diluted
 
$
0.21

 
$
0.18

 
$
0.20

 
$
0.27

Weighted-average shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
315.8

 
314.7

 
315.7

 
314.7

Diluted
 
316.5

 
315.7

 
316.4

 
315.7



- more -


5

AK STEEL HOLDING CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in millions, except per share amounts)
 
 
 
 
 
 
 
June 30,
2019
 
December 31,
2018
ASSETS
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
42.2

 
$
48.6

Accounts receivable, net
 
675.2

 
635.8

Inventory
 
1,353.9

 
1,419.9

Other current assets
 
88.9

 
97.0

Total current assets
 
2,160.2

 
2,201.3

Property, plant and equipment
 
7,034.5

 
6,969.2

Accumulated depreciation
 
(5,155.3
)
 
(5,057.6
)
Property, plant and equipment, net
 
1,879.2

 
1,911.6

Operating lease assets
 
245.7

 

Other non-current assets
 
401.9

 
402.8

TOTAL ASSETS
 
$
4,687.0

 
$
4,515.7

 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
Current liabilities:
 
 
 
 
Accounts payable
 
$
732.3

 
$
801.0

Accrued liabilities
 
242.9

 
288.9

Current portion of operating lease liabilities
 
53.9

 

Current portion of pension and other postretirement benefit obligations
 
37.8

 
38.7

Total current liabilities
 
1,066.9

 
1,128.6

Non-current liabilities:
 
 
 
 
Long-term debt
 
1,946.2

 
1,993.7

Long-term operating lease liabilities
 
212.9

 

Pension and other postretirement benefit obligations
 
808.0

 
829.9

Other non-current liabilities
 
177.4

 
134.0

TOTAL LIABILITIES
 
4,211.4

 
4,086.2

 
 
 
 
 
Equity:
 
 
 
 
Common stock, authorized 450,000,000 shares of $0.01 par value each; issued 317,705,839 and 316,595,613 shares in 2019 and 2018; outstanding 316,342,354 and 315,535,765 shares in 2019 and 2018
 
3.2

 
3.2

Additional paid-in capital
 
2,901.0

 
2,894.9

Treasury stock, common shares at cost, 1,363,485 and 1,059,848 shares in 2019 and 2018
 
(7.2
)
 
(6.4
)
Accumulated deficit
 
(2,629.5
)
 
(2,691.8
)
Accumulated other comprehensive loss
 
(131.9
)
 
(100.0
)
Total stockholders’ equity
 
135.6

 
99.9

Noncontrolling interests
 
340.0

 
329.6

TOTAL EQUITY
 
475.6

 
429.5

TOTAL LIABILITIES AND EQUITY
 
$
4,687.0

 
$
4,515.7




- more -


6

AK STEEL HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in millions)
 
 
 
 
 
Six Months Ended June 30,
 
 
2019
 
2018
Cash flows from operating activities:
 
 
 
 
Net income
 
$
88.0

 
$
117.1

Depreciation
 
86.4

 
102.1

Depreciation—SunCoke Middletown
 
13.6

 
7.7

Amortization
 
17.5

 
17.3

Ashland Works closure
 
64.1

 

Deferred income taxes
 
0.6

 
(7.2
)
Pension and OPEB expense (income)
 
2.5

 
(16.2
)
Contributions to pension trust
 
(19.5
)
 
(15.2
)
Other postretirement benefit payments
 
(15.6
)
 
(19.3
)
Mark-to-market (gains) losses on derivative contracts
 
(61.1
)
 
(7.4
)
Changes in working capital
 
(33.4
)
 
28.8

Other operating items, net
 
(6.9
)
 
(20.3
)
Net cash flows from operating activities
 
136.2

 
187.4

 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
Capital investments
 
(82.4
)
 
(64.0
)
Other investing items, net
 
10.3

 
0.3

Net cash flows from investing activities
 
(72.1
)
 
(63.7
)
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
Net borrowings (payments) under credit facility
 
(50.0
)
 
(80.0
)
Redemption of long-term debt
 
(4.2
)
 

SunCoke Middletown distributions to noncontrolling interest owners
 
(15.3
)
 
(34.8
)
Other financing items, net
 
(1.0
)
 
(0.9
)
Net cash flows from financing activities
 
(70.5
)
 
(115.7
)
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
 
(6.4
)
 
8.0

Cash and cash equivalents, beginning of period
 
48.6

 
38.0

Cash and cash equivalents, end of period
 
$
42.2

 
$
46.0




- more -


7

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, adjusted EBITDA margin and adjusted net income attributable to AK Steel Holding that exclude the effects of noncontrolling interests and costs associated with the closure of Ashland Works. The company believes that reporting adjusted net income with these items excluded more clearly reflects its current operating results and provides investors with a better understanding of its overall financial performance. Adjustments to net income do not result in an income tax effect as any gross income tax effects are offset by a corresponding change in the deferred income tax valuation allowance.

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 different companies by removing the effects of different factors that might otherwise make comparisons inaccurate or inappropriate. The adjusted results, although not financial measures under generally accepted accounting principles (“GAAP”) and not identically applied by other companies, 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 that otherwise would distort the comparison.  Adjusted EBITDA, adjusted EBITDA margin and adjusted net income are not, however, intended as alternative measures of operating results or cash flow from operations as determined in accordance with GAAP and are not necessarily comparable to similarly titled measures used by other companies.

Neither current nor potential investors in the company’s securities should rely on adjusted EBITDA, adjusted EBITDA margin or adjusted net income as a substitute for any GAAP financial measure and the company encourages current and potential investors to review the following reconciliations of adjusted EBITDA and adjusted net income.

Reconciliation of Adjusted EBITDA
(dollars in millions, except per ton)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
Net income attributable to AK Steel Holding
 
$
66.8

 
$
56.6

 
$
62.3

 
$
85.3

Net income attributable to noncontrolling interests
 
13.1

 
15.7

 
25.7

 
31.8

Income tax expense (benefit)
 
1.0

 
(0.5
)
 
2.4

 
(5.4
)
Interest expense, net
 
36.9

 
37.7

 
74.6

 
75.1

Depreciation and amortization
 
53.0

 
58.6

 
109.3

 
119.9

EBITDA
 
170.8

 
168.1

 
274.3

 
306.7

Less: EBITDA of noncontrolling interests (a)
 
19.3

 
19.7

 
39.3

 
39.6

Ashland Works closure
 

 

 
77.4

 

Adjusted EBITDA
 
$
151.5

 
$
148.4

 
$
312.4

 
$
267.1

Adjusted EBITDA margin
 
9.0
%
 
8.5
%
 
9.2
%
 
7.8
%

(a)
The reconciliation of net income attributable to noncontrolling interests to EBITDA of noncontrolling interests is as follows:
(dollars in millions)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
Net income attributable to noncontrolling interests
 
$
13.1

 
$
15.7

 
$
25.7

 
$
31.8

Depreciation
 
6.2

 
4.0

 
13.6

 
7.8

EBITDA of noncontrolling interests
 
$
19.3

 
$
19.7

 
$
39.3

 
$
39.6



- more -


8


Reconciliation of Adjusted Net Income
 
 
 
 
 
 
 
 
 
(dollars in millions, except per share)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
Reconciliation to Net Income Attributable to AK Steel Holding
 
 
 
 
 
 
 
 
Net income attributable to AK Steel Holding
 
$
66.8

 
$
56.6

 
$
62.3

 
$
85.3

Ashland Works closure
 

 

 
77.4

 

Adjusted net income attributable to AK Steel Holding
 
$
66.8

 
$
56.6

 
$
139.7

 
$
85.3

 
 
 
 
 
 
 
 
 
Reconciliation to Diluted Earnings per Share
 
 
 
 
 
 
 
 
Diluted earnings per share
 
$
0.21

 
$
0.18

 
$
0.20

 
$
0.27

Ashland Works closure
 

 

 
0.24

 

Adjusted diluted earnings per share
 
$
0.21

 
$
0.18

 
$
0.44

 
$
0.27


Reconciliation of Adjusted EBITDA Guidance for 2019
(dollars in millions)
 
Year Ending December 31, 2019
 
 
Low
 
High
Net income attributable to AK Holding
 
$
41

 
$
61

Net income attributable to noncontrolling interests
 
55

 
55

Income tax expense
 
7

 
7

Interest expense, net
 
155

 
155

Depreciation and amortization
 
210

 
210

EBITDA
 
468

 
488

Less: EBITDA of noncontrolling interests (a)
 
75

 
75

Ashland Works closure
 
77

 
77

Adjusted EBITDA
 
$
470

 
$
490


(a)
The reconciliation of net income attributable to noncontrolling interests to EBITDA of noncontrolling interests is as follows:
(dollars in millions)
 
Year Ending December 31, 2019
 
 
Low
 
High
Net income attributable to noncontrolling interests
 
$
55

 
$
55

Depreciation
 
20

 
20

EBITDA of noncontrolling interests
 
$
75

 
$
75






- more -


9

Reconciliation of Adjusted Net Income Guidance for 2019
(dollars in millions, except per share)
 
Year Ending December 31, 2019
 
 
Low
 
High
Reconciliation to Net Income Attributable to AK Steel Holding
 
 
 
 
Net income attributable to AK Steel Holding
 
$
41

 
$
61

Ashland Works closure
 
77

 
77

Adjusted net income attributable to AK Steel Holding
 
$
118

 
$
138

 
 
 
 
 
Reconciliation to Diluted Earnings per Share
 
 
 
 
Diluted earnings per share
 
$
0.13

 
$
0.20

Ashland Works closure
 
0.24

 
0.24

Adjusted diluted earnings per share
 
$
0.37

 
$
0.44




AK STEEL HOLDING CORPORATION
FLAT-ROLLED STEEL SHIPMENTS
(Unaudited)
(Tons in thousands)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
Tons Shipped by Product
 
 
 
 
 
 
 
 
Stainless/electrical
 
198.4

 
221.5

 
405.0

 
422.2

Coated
 
738.4

 
721.3

 
1,452.1

 
1,455.8

Cold-rolled
 
228.6

 
269.6

 
485.4

 
552.1

Hot-rolled
 
189.8

 
188.1

 
358.9

 
362.4

Other
 
36.2

 
39.3

 
78.4

 
78.2

Total shipments
 
1,391.4

 
1,439.8

 
2,779.8

 
2,870.7

 
 
 
 
 
 
 
 
 
Shipments by Product (%)
 
 
 
 
 
 
 
 
Stainless/electrical
 
14
%
 
15
%
 
15
%
 
15
%
Coated
 
53
%
 
50
%
 
52
%
 
50
%
Cold-rolled
 
16
%
 
19
%
 
17
%
 
19
%
Hot-rolled
 
14
%
 
13
%
 
13
%
 
13
%
Other
 
3
%
 
3
%
 
3
%
 
3
%
Total shipments
 
100
%
 
100
%
 
100
%
 
100
%

###

exhibit992toform8kinvest
Second Quarter 2019 Financial Results July 29, 2019 Creating Innovative Steel Solutions © 2019 AK Steel. All rights reserved.


 
AK Steel Executive Presenters . Roger Newport Chief Executive Officer . Kirk Reich President and Chief Operating Officer . Jaime Vasquez Vice President – Finance and Chief Financial Officer SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 2 © 2019 AK Steel. All rights reserved.


 
Forward-Looking Statements Certain statements made or incorporated by reference in this presentation reflect management’s estimates and beliefs and are intended to be “forward-looking statements” identified in 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 forward-looking statements. The company cautions readers that forward-looking statements reflect the company’s current beliefs and judgments, but are not guarantees of future performance or outcomes. They are based on a number of assumptions and estimates that are inherently affected by economic, competitive, regulatory, and operational risks and uncertainties and contingencies that are beyond the company’s control. They are also based upon assumptions about future business decisions and conditions that may change. Forward-looking statements are only predictions and involve risks and uncertainties, resulting in the possibility that actual events or performance will differ materially from such predictions as a result of certain risk factors. Such factors that could cause the company’s actual results and financial condition to differ materially from the results contemplated by such forward-looking statements include reduced selling prices, shipments and profits associated with a highly competitive and cyclical industry; domestic and global steel overcapacity; risks related to U.S. government actions on trade agreements, trade related laws and regulations and trade related treaties or policies; changes in the cost of raw materials, supplies 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 or key suppliers; the company’s significant proportion of sales to the automotive market; reduced demand in key product markets due to competition from aluminum or other alternatives to steel; excess inventory of raw materials; supply chain disruptions or poor quality of raw materials or supplies; production disruption or reduced production levels; the company’s healthcare and pension obligations; not reaching new labor agreements on a timely basis; major litigation, arbitrations, environmental issues and other contingencies; regulatory compliance and changes; climate change and greenhouse gas emissions; conditions in the financial, credit, capital and banking markets; the company’s use of derivative contracts to hedge commodity pricing volatility; potential permanent idling of facilities; inability to fully realize benefits of margin enhancement initiatives; information technology security threats, cybercrime and exposure of private information; the company’s failure to achieve expected benefits of the Precision Partners acquisition; changes in tax laws and regulations; as well as those risks and uncertainties discussed in more detail in the company’s Annual Report on Form 10-K for the year ended December 31, 2018, and its subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with or furnished to the Securities and Exchange Commission. As such, the company cautions readers not to place undue reliance on forward-looking statements, which speak only to the company’s plans, assumptions and expectations as of the date hereof. The company undertakes no obligation to publicly update any forward-looking statement, except as required by law. SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 3 © 2019 AK Steel. All rights reserved.


 
Roger Newport Chief Executive Officer SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 © 2019 AK Steel. All rights reserved.


 
Protecting Our Most Important Asset – Our People . Continue to be an industry leader in safety performance . Six facilities achieved zero OSHA DART* cases for 2Q 2019 . Four facilities achieved zero OSHA Recordable cases for 2Q 2019 . Two facilities achieved zero occupational injuries for 2Q 2019 * Days Away from work, Restricted or Transferred cases SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 5 © 2019 AK Steel. All rights reserved.


 
Sustainability – Telling our Story Improvement in waste recycling from 55% to 66% Hazardous waste generation down 3,458 tons Renewable energy up 23% AK Steel recently recognized on the television series John Holden – EARTH “EARTH” for our environmental sustainability efforts 2018 Sustainability Report available at www.aksteel.com SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 6 © 2019 AK Steel. All rights reserved.


 
Strategic Accomplishments 2014-15 2016 2017 2018 2019+ • Acquired Dearborn assets • Dearborn coating line • New Research and Innovation • Best financial performance • Capital investment to support • Idled Ashland hot-end upgraded to produce next Center since 2008 growth at Precision Partners steelmaking operations generation steels • Introduced NEXMET® 1000 • General Motors Supplier of • Announced closure of Ashland • Began product portfolio • Introduced NEXMET® 440EX and 1200 the Year Works; $40 million annual optimization • Strengthened balance sheet • Raw Material Supplier of the • Mansfield melt shop upgrade run-rate savings • Reduced interest cost and Year by FCA USA • Launched TRAN-COR® X • DOE award to leverage high extended maturity • DOE award to improve motor electrical steel performance computing for • ~$210 million pension de- efficiency for hybrid/electric • DOE Award for development hot rolling steel research risking annuitizations vehicles of lightweight steels • General Motors Supplier of • Acquisition of Precision • Record AK Tube results the Year Partners • ~$280 million pension • Ford Smart Brand Pillar Award • Major investment at de-risking annuitization • DOE award to leverage Middletown hot-end • Reduced debt by $116 million supercomputing for advanced thermo-mechanical forming process development • NEXMET® AHSS sourced on first automotive application • Major investment at Dearborn hot-end SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 7 © 2019 AK Steel. All rights reserved.


 
Ashland Works Update . Plan to close the Ashland Works facility by the end of 2019 − Blast furnace and ‘hot-end’ were idled in 2015 . Transitioning of production to increase utilization at other AK Steel coating lines in the U.S. is on track . These actions are expected to result in annual savings of over $40 million beginning in 2020 SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 8 © 2019 AK Steel. All rights reserved.


 
Steel Market Update North America Light Vehicle Production . Overall demand for steel remains solid (Millions) . Automotive production remains strong, although 17.1 17.0 16.8 16.6 16.8 expected to be slightly lower than 2018 . Service center inventories are balanced with demand 2017 2018 2019E 2020E 2021E U.S. Housing Starts U.S. Non-Residential Construction Fixed Investment (Millions) ($ Billions) $2,921 $2,868 1.31 $2,803 $2,712 1.26 1.26 1.27 $2,539 1.21 2017 2018 2019E 2020E 2021E 2017 2018 2019E 2020E 2021E Source: AK Steel estimates SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 9 © 2019 AK Steel. All rights reserved.


 
Strategy – Create Shareholder Value by . . . COMMERCIALIZING TRANSFORMING DRIVING innovative our operations to further growth - organically products significantly improve and through acquisitions and services our competitive into new markets and cost position downstream business SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 10 © 2019 AK Steel. All rights reserved.


 
Kirk Reich President and Chief Operating Officer SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 © 2019 AK Steel. All rights reserved.


 
Record Performance and Solid Growth at AK Tube . Expect 2019 to exceed record 2018 results . Proficient in both carbon and stainless tube across the entire spectrum of steel grades . Production capabilities provide a competitive advantage . Solid and growing automotive and power sports OEM partnerships . Significant additional opportunities in development SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 12 © 2019 AK Steel. All rights reserved.


 
Growth at Precision Partners . Leading producer of hot- and cold-stamped automotive components and assemblies . Increase in profitability expected in 2019 . Joint commercial activity with AK Steel and AK Tube progressing . Investing in new facility and equipment to support new business awarded . One of only three North American producers with the capability to produce hot-stamped, one-piece, door ring SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 13 © 2019 AK Steel. All rights reserved.


 
Department of Energy Awards . Non Oriented Electrical Steel 30% efficiency improvement – intended for industrial motors and electric vehicle motors . Low density steel – targeted 10% reduction using new steel alloys . Leveraged supercomputing for hot roll/material property modeling . Leveraged supercomputing for advanced thermo- mechanical forming process development SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 14 © 2019 AK Steel. All rights reserved.


 
Automotive Materials and Components Solutions Provider . Uniquely positioned among suppliers to automotive OEMs ‒ Broadest portfolio of materials ‒ Tool and die design and manufacturing ‒ Hot- and cold-stamped offerings ‒ Complex part assembly ‒ Exhaust system components ‒ Tubular structural parts . More than 70% of volume sold into automotive ‒ Stability through fixed price contracts ‒ Components typically sourced for the life of model . Go-to solution provider with focus on research and innovation ‒ More than 550 engineers, metallurgists, technical specialists and tool-makers supporting automotive OEMs ‒ Depth of product portfolio, research and innovation, and technical support allows for consistent and growing market share SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 15 © 2019 AK Steel. All rights reserved.


 
Jaime Vasquez Vice President – Finance and Chief Financial Officer SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 © 2019 AK Steel. All rights reserved.


 
Second Quarter 2019 Financial Highlights ($ Millions, except per share and per ton) 2Q 2018 1Q 2019 2Q 2019 Y-o-Y Flat-Rolled Shipments (in 000s of tons) 1,440 1,388 1,391 -3% Flat-Rolled Average Selling Price Per Ton $1,101 $1,112 $1,102 0% Net Sales $1,746.6 $1,697.7 $1,680.5 -4% Net Income (Loss) $56.6 ($4.5) $66.8 18% Adjusted Net Income $56.6 $72.9 $66.8 18% Adjusted EBITDA $148.4 $160.9 $151.5 2% Adjusted EBITDA Margin 8.5% 9.5% 9.0% 6% Earnings (Loss) Per Share – Diluted $0.18 ($0.01) $0.21 17% Adjusted Earnings Per Share – Diluted $0.18 $0.23 $0.21 17% Note: See Appendix for reconciliations of non-GAAP financial measures SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 17 © 2019 AK Steel. All rights reserved.


 
Adjusted EBITDA – 1Q 2019 to 2Q 2019 $200 $21 $175 $161 $152 $150 $5 $16 $9 $125 ($ ($ Millions) $100 $75 $50 1Q 2019 Actual Pricing/Volume/Mix Raw Materials & Operations Other 2Q 2019 Actual Energy SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 18 © 2019 AK Steel. All rights reserved.


 
2019 Full Year Guidance Estimates . Net income attributable to AK Steel of ~$41 to $61 million Flat-Rolled Shipments . Adjusted net income of ~$118 to $138 million (000s tons) . Adjusted EBITDA in the range of ~$470 to $490 million 8,000 6,974 5,936 5,683 ‒ Based on average carbon hot-rolled coil spot market price of 6,000 5,596 ~$555 per ton 4,000 ‒ Every $10 change in the carbon hot roll coil spot market price, adjusted EBITDA and net income impacted by ~$5 to $7 million annually 2,000 . Adjusted results exclude the effect of the Ashland Works closure 0 charge of $77.4 million recorded in 1Q 2015 2016 2017 2018 Flat-Rolled Average Selling Price Per Ton Adjusted EBITDA ($ Millions) $1,200 $1,091 $600 $563.4 $1,022 $528.5 $955 $929 $500 $472.8 $900 $400 $600 $300 $180.4 $200 $300 $100 $0 $0 2015 2016 2017 2018 2015 2016 2017 2018 Note: 2017 and prior recast to reflect retrospective adjustments from certain accounting changes, including switch from LIFO The company's guidance is based on AK Steel’s current estimates and may change based on business conditions and other factors. There are many other items that could affect the company’s 2019 results, as outlined in the Forward-Looking Statements slide of this presentation, including developments in the domestic and global economies, in the company’s business, in trade actions and the imposition of tariffs, and in the businesses of the company’s customers, suppliers and competitors. SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 19 © 2019 AK Steel. All rights reserved.


 
2019 Full Year Other Guidance Items . Earnings per share of ~$0.13 to $0.20 . Adjusted earnings per share of ~$0.37 to $0.44 (1) . Flat-rolled shipments ~5.5 – 5.6 million tons . Average flat-rolled selling price roughly the same as 2018 . Major maintenance outages ~$70 to $80 million; fourth quarter expected to be similar to second quarter . Depreciation and amortization ~$210 million (2) . Cash/total interest expense of ~$135/$155 million . Pension and OPEB income ~$20 to $25 million (3) . OPEB payments of ~$40 million . Minimal cash and book taxes . Working capital expected to be modest source of cash (1) Adjusted results exclude the effect of the Ashland Works closure charge of $77.4 million recorded in 1Q (2) Includes $20 million for SunCoke (3) Includes ~$6 million expense reported in Cost of Products Sold/Selling and Administrative expenses; excludes $13 million charge in 1Q for Ashland Works closure The company's guidance is based on AK Steel’s current estimates and may change based on business conditions and other factors. There are many other items that could affect the company’s 2019 results, as outlined in the Forward-Looking Statements slide of this presentation, including developments in the domestic and global economies, in the company’s business, in trade actions and the imposition of tariffs, and in the businesses of the company’s customers, suppliers and competitors. SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 20 © 2019 AK Steel. All rights reserved.


 
THANK YOU! SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 © 2019 AK Steel. All rights reserved.


 
Appendix SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 © 2019 AK Steel. All rights reserved.


 
Investor Contact SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 23 © 2019 AK Steel. All rights reserved.


 
High-Value Product Mix with More Predictable Pricing Flat-Rolled Product Mix Customer Contract Structure 2015 2015 Other 3% Spot Market Hot-rolled ~19% 18% Coated Fixed Base 48% Price Contracts Stainless/ Steel Index ~62% Electrical Based Contracts 13% ~19% Cold-rolled 2018 2018 18% Other 3% Spot Market Hot-rolled ~13% 13% Coated Fixed Base 50% Price Contracts Stainless/ Steel Index ~70% Electrical Based Contracts 15% ~17% Cold-rolled 19% SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 24 © 2019 AK Steel. All rights reserved.


 
Balance Sheet and Cash Flow Second Quarter Highlights Robust Liquidity ($ Millions) . Reduced borrowings by $95 million $1,500 $1,354 $1,079 . Maintain focus on strengthening balance sheet $989 $1,000 $845* . Increased revolving credit facility to $1.5 billion $700 . Ended quarter with liquidity of more than $1 billion $500 . Working capital was a source of $62 million; expected $0 to be a modest source of cash for full year 2019 12/31/15 12/31/16 12/31/17 12/31/18 06/30/19 * Acquisition of Precision Partners Consistent Capital Investments Manageable Pension Contributions ($ Millions) ($ Millions) $200 ~$170 - $190 $75 $153 $152 $150 $128 $50 $50 $50 $44 $44 $99 $50 $100 $24 $25 $50 $0 $0 $0 2015 2016 2017 2018 2019E 2015 2016 2017 2018 2019E 2020E 2021E SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 25 © 2019 AK Steel. All rights reserved.


 
Significantly Improved Debt Profile ($ Millions) December 31, 2015 June 30, 2019 Total Debt: $2.4 billion $700 $150 $150 $537 Total Debt: $2.0 billion $7 $406 $406 $380 $380 $392 $290 $285 $270 $550 $530 $149 $62 $62 $30 $30 $7 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Credit Facility Senior Notes Senior Secured Notes Industrial Revenue Bonds . Liquidity is sufficient to pay down the $149 million exchangeable notes due in November 2019 Note: Excludes unamortized debt discount and issuance costs SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 26 © 2019 AK Steel. All rights reserved.


 
Non-GAAP Financial Measures Reconciliation of Adjusted Net Income Qtr ended Qtr ended 1st Half Qtr ended Qtr ended 1st Half 2019 Guidance ($ Millions) 2016 2017 2018 03/31/2018 06/30/2018 2018 03/31/2019 06/30/2019 2019 Low High Reconciliation to Net Income (Loss) Attributable to AK Steel Holding Corporation Net income (loss) attributable to AK Steel Holding Corporation, as reported ($16.8) $103.5 $186.0 $28.7 $56.6 $85.3 ($4.5) $66.8 $62.3 $41 $61 Pension and OPEB net corridor and settlement charges 68.1 14.5 Charges (credit) for termination of pellet agreement and related transportation costs 69.5 (19.3) Ashland Works closure 77.4 77.4 77 77 Asset impairment charge 75.6 Adjusted net income attributable to AK Steel Holding $120.8 $159.8 $200.5 $28.7 $56.6 $85.3 $72.9 $66.8 $139.7 $118 $138 Reconciliation to Diluted Earnings (Losses) per Share Diluted earnings (loss) per share, as reported ($0.07) $0.32 $0.59 $0.09 $0.18 $0.27 ($0.01) $0.21 $0.20 $0.13 $0.20 Pension and OPEB net corridor charge/settlement loss 0.30 0.05 Charges (credit) for termination of pellet agreement and related transportation costs 0.30 (0.06) Ashland Works closure 0.24 0.24 0.24 0.24 Asset impairment charge 0.24 Adjusted diluted earnings per share $0.53 $0.50 $0.64 $0.09 $0.18 $0.27 $0.23 $0.21 $0.44 $0.37 $0.44 Flat-rolled Shipments 5,936.4 5,596.2 5,683.4 1,430.9 1,439.8 2,870.7 1,388.4 1,391.4 2,779.8 Flat-rolled Average Selling Price $955 $1,022 $1,091 $1,045 $1,101 $1,073 $1,112 $1,102 $1,107 Note: 2017 and prior recast to reflect retrospective adjustments from certain accounting changes, including switch from LIFO SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 27 © 2019 AK Steel. All rights reserved.


 
Non-GAAP Financial Measures Reconciliation of Adjusted EBITDA Qtr ended Qtr ended 1st Half Qtr ended Qtr ended 1st Half 2019 Guidance ($ Millions) 2016 2017 2018 3/31/2018 6/30/2018 2018 3/31/2019 6/30/2019 2019 Low High Net income (loss) attributable to AK Steel Holding ($16.8) $103.5 $186.0 $28.7 $56.6 $85.3 ($4.5) $66.8 $62.3 $41 $61 Net income (loss) attributable to NCI 66.0 61.4 58.1 16.1 15.7 31.8 12.6 13.1 25.7 55 55 Income tax expense (benefit) (16.9) (2.2) (6.2) (4.9) (0.5) (5.4) 1.4 1.0 2.4 7 7 Interest expense, net 162.3 150.9 150.7 37.4 37.7 75.1 37.7 36.9 74.6 155 155 Depreciation and amortization 221.4 236.3 237.0 61.3 58.6 119.9 56.3 53.0 109.3 210 210 EBITDA $416.0 $549.9 $625.6 $138.6 $168.1 $306.7 $103.5 $170.8 $274.3 $468 $488 Less: EBITDA of NCI (a) 80.8 77.7 76.7 19.9 19.7 39.6 20.0 19.3 39.3 75 75 Pension and OPEB net corridor charges / settlement loss 68.1 14.5 Charges (credit) for termination of pellet agreement and related transportation costs 69.5 (19.3) Ashland Works closure 77.4 77.4 77 77 Asset impairment charge 75.6 Adjusted EBITDA $472.8 $528.5 $563.4 $118.7 $148.4 $267.1 $160.9 $151.5 $312.4 $470 $490 Adjusted EBITDA margin 8.0% 8.7% 8.3% 7.2% 8.5% 7.8% 9.5% 9.0% 9.2% (a) The reconciliation of EBITDA of noncontrolling interest to net income attributable to noncontrolling interests is as follows: Net income (loss) attributable to noncontrolling interests $66.0 $61.4 $58.1 $16.1 $15.7 $31.8 $12.6 $13.1 $25.7 $55 $55 Depreciation 14.8 16.3 18.6 3.8 4.0 7.8 7.4 6.2 13.6 20 20 EBITDA of noncontrolling interests $80.8 $77.7 $76.7 $19.9 $19.7 $39.6 $20.0 $19.3 $39.3 $75 $75 Note: 2017 and prior recast to reflect retrospective adjustments from certain accounting changes, including switch from LIFO SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 28 © 2019 AK Steel. All rights reserved.


 
SAFETY | QUALITY | PRODUCTIVITY | INNOVATION July 2019 © 2019 AK Steel. All rights reserved.