*DJ AK Steel 4Q Loss/Shr 17c >AKS
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*DJ AK Steel 4Q Loss $53.9M >AKS
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*DJ AK Steel 4Q Sales $1.45B >AKS
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Press Release: AK Steel Announces Fourth Quarter and Full-Year 2019 Financial Results
AK Steel Announces Fourth Quarter and Full-Year 2019 Financial Results
WEST CHESTER, Ohio, Feb. 20, 2020 (GLOBE NEWSWIRE) -- AK Steel (NYSE: AKS) today reported its financial results for the fourth quarter and full-year 2019.
Fourth Quarter 2019 Highlights
-- Fourth quarter 2019 net loss of $53.9 million, or $0.17 per diluted
share; adjusted net loss of $35.1 million, or $0.11 per diluted share
-- Fourth quarter 2019 adjusted EBITDA of $47.2 million
-- Fourth quarter 2019 sales of $1.4 billion
Full-Year 2019 Highlights
-- Full-year 2019 net income of $11.2 million, or $0.04 per diluted share;
adjusted net income of $107.4 million, or $0.34 per diluted share
-- Full-year 2019 adjusted EBITDA of $446.5 million
-- Full-year 2019 sales of $6.4 billion
"We operated well in the face of very challenging market conditions during the fourth quarter," said Roger K. Newport, Chief Executive Officer of AK Steel. "We successfully completed a major planned maintenance outage at our Dearborn Works in October and made significant investments in the blast furnace and steelmaking operations, which will generate substantial recurring cost savings. Also, during the fourth quarter we entered into a merger agreement with Cleveland-Cliffs Inc. We continue to be excited about the value-creation potential of the transaction, which we anticipate will close on March 13, subject to regulatory review and shareholder approval."
AK Steel reported a net loss of $53.9 million, or $0.17 per diluted share of common stock, for the fourth quarter of 2019. This compared to net income of $33.5 million, or $0.11 per diluted share, for the fourth quarter of 2018. During the fourth quarter of 2019, the company took another major step to de-risk its balance sheet and entered into a $615.6 million pension annuity transaction, bringing total pension obligations transferred through annuity transactions to approximately $1.1 billion since 2016. As a result, the company incurred a non-cash pension settlement charge of $26.9 million, or 0.08 per diluted share, in the fourth quarter. Also during the fourth quarter, the company completed the transition of all products from its Ashland Works coating line and closed that facility, as planned. In addition, the company recorded a credit of $8.1 million, or $0.02 per diluted share, to reflect adjustments to the Ashland Works closure costs recorded previously. Excluding these items, adjusted net loss for the fourth quarter of 2019 was $35.1 million, or $0.11 per diluted share. This compares to adjusted net income of $48.0 million, or $0.16 per diluted share, for the fourth quarter a year ago. Included in reported results in the year ago fourth quarter were non-cash pension settlement charges of $14.5 million, or $0.05 per diluted share.
The company's adjusted EBITDA (as defined in the "Non-GAAP Financial Measures" section below) was $47.2 million, or 3.3% of net sales, for the fourth quarter of 2019, compared to adjusted EBITDA of $135.5 million, or 8.1% of net sales, for the fourth quarter a year ago. Contributing to this decline compared to the fourth quarter a year ago were significantly lower spot market selling prices, lower shipments to the automotive market due primarily to the General Motors strike, and higher costs for iron ore, coal and coke during the current year fourth quarter. Those challenges more than offset lower costs for scrap and energy. The company also had higher planned outage costs of $34.4 million in the fourth quarter of 2019, compared to $14.9 million in the fourth quarter of 2018.
The company ended 2019 with total liquidity of $835.4 million, consisting of cash and cash equivalents and $804.6 million of availability under the company's revolving credit facility. During 2019, the company reduced outstanding long-term debt by $24.9 million and its pension and other postretirement benefit obligations by $109.8 million. In November 2019, the company redeemed its $148.5 million aggregate principal amount of Exchangeable Senior Notes at their maturity date by using its revolving credit facility.
Full-Year 2019 Results
AK Steel reported net income of $11.2 million, or $0.04 per diluted share of common stock, for 2019. This compared to net income of $186.0 million, or $0.59 per diluted share, for 2018. After adjusting for the aforementioned pension settlement charge of $26.9 million and charges of $69.3 million for the Ashland Works closure costs, adjusted net income for 2019 was $107.4 million, or $0.34 per diluted share. This compares to adjusted net income of $200.5 million, or $0.64 per diluted share, for 2018. Included in the reported results for 2018 was a pension settlement charge of $14.5 million. We made cash payments of $8.8 million in 2019 related to the Ashland Works charges, and expect to make cash payments of approximately $25.0 million in 2020 and the remaining amount over several years thereafter.
The company's adjusted EBITDA for 2019 was $446.5 million, or 7.0% of net sales, compared to adjusted EBITDA of $563.4 million, or 8.3% of net sales, for a year ago. The decline was primarily driven by significantly lower steel spot market selling prices, lower shipments to the automotive and distributor and converter markets, and higher costs for iron ore, coal and coke during 2019. These factors more than offset higher automotive market selling prices, lower costs for outages, energy and certain raw materials, including scrap and alloys, and higher unrealized gains on iron ore derivatives compared to a year ago. The company had major maintenance outage costs of $81.0 million in 2019, compared to $91.1 million in 2018. Included in the results for 2019 were mark-to-market gains of $49.6 million from iron ore derivatives, of which approximately two-thirds are associated with iron ore purchases in future years. Not included in the financial results for 2019 were realized gains of $35.9 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 periods, compared to $21.9 million for the same period in 2018. For 2018, the company recorded mark-to-market gains of $0.2 million.
(Dollars in millions,
except per share and Three Months Ended Twelve Months Ended
per ton data) December 31, December 31,
2019 2018 2019 2018
Flat-rolled steel
shipments (000 tons) 1,259.5 1,388.7 5,342.2 5,683.4
Selling price per
flat-rolled steel
ton $ 1,027 $ 1,106 $ 1,078 $ 1,091
Net sales $1,445.7 $1,677.1 $6,359.4 $6,818.2
Operating profit 10.4 86.5 209.3 364.4
Net income (loss)
attributable to AK
Steel Holding
Corporation (53.9) 33.5 11.2 186.0
Adjusted net income
(loss) attributable
to AK Steel Holding
Corporation (35.1) 48.0 107.4 200.5
Adjusted EBITDA 47.2 135.5 446.5 563.4
Net income (loss) per
diluted share
attributable to AK
Steel Holding
Corporation $ (0.17) $ 0.11 $ 0.04 $ 0.59
Earnings Conference Call
As a result of the pending merger with Cleveland-Cliffs Inc., AK Steel will not be holding an earnings conference call for the fourth quarter.
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 products, hot- and cold-stamped components, and die design and tooling. Headquartered in West Chester, Ohio (Greater Cincinnati), the company has approximately 9,300 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, uncertainties and contingencies that are beyond the company's control, and 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, treaties 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
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February 20, 2020 07:00 ET (12:00 GMT)
*DJ AK钢4Q损失/Shr 17c>AKS
道琼斯通讯社(212-416-2800)
2020年2月20日晚上07:00(格林尼治时间12:00)
*DJ AK钢4Q亏损$5390万>AKS
道琼斯通讯社(212-416-2800)
2020年2月20日晚上07:00(格林尼治时间12:00)
*DJ AK钢4Q销售额1.45亿美元>AKS
道琼斯通讯社(212-416-2800)
2020年2月20日晚上07:00(格林尼治时间12:00)
新闻稿:AK钢铁公司公布2019年第四季度和全年财务业绩
AK钢铁公司公布2019年第四季度和全年财务业绩
俄亥俄州西切斯特,2020年2月20日(环球新闻社)--AK钢铁公司(纽约证券交易所市场代码:AK)今天公布了其2019年第四季度和全年的财务业绩。
2019年第四季度
-2019年第四季度净亏损5 390万美元,即每稀释一次净亏损0.17美元
调整后净亏损3 510万美元,或稀释后每股0.11美元
-2019年第四季度调整后的EBITDA 4 720万美元
-2019年第四季度销售额14亿美元
2019年全年
-2019年全年净收入1 120万美元,或稀释后每股0.04美元;
调整后净收入为1.074亿美元,或稀释后每股0.34美元
-2019年全年调整后的EBITDA 4.465亿美元
-2019年全年销售额64亿美元
AK钢铁首席执行官罗杰·K·纽波特(Roger K.Newport)表示:“面对第四季度极具挑战性的市场环境,我们的经营状况良好。”“我们在10月份成功地完成了迪尔伯恩(Dearborne)工厂一次计划中的重大维修中断,并对高炉和炼钢业务进行了重大投资,这将带来大量经常性成本节约。此外,在第四季度,我们与克利夫兰-克利夫斯公司(克利夫兰-克利夫斯公司)达成了合并协议。我们继续对这笔交易的创造价值潜力感到兴奋,我们预计交易将于3月13日结束,但须经监管审查和股东批准。”
AKSteel报告称,2019年第四季度净亏损5,390万美元,即每股稀释普通股净亏损0.17美元。相比之下,2018年第四季度的净利润为3,350万美元,即每股稀释后的0.11美元。在2019年第四季度,该公司在资产负债表上又迈出了一大步,进行了6.156亿美元的养老金年金交易,自2016年以来,通过年金交易转移的养老金债务总额约为11亿美元。因此,该公司在第四季度支付了2 690万美元的非现金养老金结算费用,即每股稀释后的0.08美元。同样在第四季度,该公司完成了其Ashland工厂涂装线的所有产品的过渡,并按计划关闭了该工厂。此外,该公司记录的贷方为810万美元,即每股稀释后的0.02美元,以反映对以前记录的Ashland工厂关闭费用的调整。不包括这些项目,2019年第四季度调整后的净亏损为3,510万美元,即稀释后每股0.11美元。相比之下,去年第四季度调整后的净利润为4,800万美元,即每股稀释后的0.16美元。在去年第四季度公布的业绩中,包括了1450万美元的非现金养老金结算费用,即每股0.05美元。
该公司调整后的EBITDA(如下文“非GAAP财务措施”一节所定义)在2019年第四季度为4720万美元,占净销售额的3.3%,而去年第四季度经调整的EBITDA为1.355亿美元,占净销售额的8.1%。与去年第四季度相比,导致这一下降的原因是现货市场销售价格大幅下跌,主要由于通用汽车罢工,汽车市场出货量减少,以及今年第四季度铁矿石、煤炭和焦炭成本上升。这些挑战不仅抵消了废料和能源成本的降低。该公司2019年第四季度的计划停运成本也比2018年第四季度的1490万美元高出3440万美元。
截至2019年,该公司的总流动资金为8.354亿美元,包括现金和现金等价物以及根据该公司的循环信贷机制提供的8.046亿美元。在2019年期间,该公司将未偿还的长期债务减少了2 490万美元,其养老金和其他退休后福利债务减少了1.098亿美元。2019年11月,该公司利用其循环信贷工具,在到期时赎回了其1.485亿美元可兑换高级债券本金总额。
2019年全年结果
AKSteel公布2019年净利润为1,120万美元,即每股稀释普通股0.04美元。相比之下,2018年的净利润为1.86亿美元,即每股稀释后的0.59美元。在对上述养恤金结算费用2 690万美元和阿什兰工厂关闭费用6 930万美元进行调整后,2019年调整后的净收入为1.074亿美元,即每股稀释后的0.34美元。相比之下,2018年调整后的净利润为2亿50万美元,即每股稀释后的0.64美元。2018年的报告结果中包括1 450万美元的养恤金结算费用。我们在2019年支付了880万美元与Ashland Works收费有关的现金,预计在2020年支付约2 500万美元,随后几年支付剩余款项。
该公司2019年调整后的EBITDA为4.465亿美元,占净销售额的7.0%,而一年前调整后的EBITDA为5.634亿美元,占净销售额的8.3%。这一下降的主要原因是钢材现货市场的销售价格大幅下降,对汽车和分销商及转炉市场的发货量减少,以及2019年铁矿石、煤炭和焦炭的成本上升。这些因素不仅抵消了较高的汽车市场销售价格、较低的停运成本、能源和某些原材料(包括废料和合金)的成本,而且与一年前相比,铁矿石衍生品的未实现收益也有所增加。该公司在2019年的主要维修中断成本为8,100万美元,而2018年为9,110万美元。在2019年的业绩中,铁矿石衍生品的市盈率为4,960万美元,其中约三分之二与未来几年购买铁矿石有关。2019年的财务业绩未包括在内的是铁矿石衍生品合约的实际收益3 590万美元,这些收益是在该公司前几个季度的财务业绩中确认为市价收益的时期内结算的,而2018年同期为2 190万美元。2018年,该公司实现了20万美元的市盈率。
(百万美元,
除每股及截至十二个月止的三个月外
(每吨数据)12月31日,12月31日,
2019 2018 2019 2018
扁轧钢
装运(千吨)1 259.5 1 388.7 5 342.2 5 683.4
销售价格
扁轧钢
1,027美元1,106美元1,078美元1,091美元
净销售额1 445.7美元1 677.1美元6 359.4美元6 818.2美元
营业利润10.4 86.5 209.3 364.4
净收入(损失)
可归因于AK
钢夹持
公司(53.9)33.5 11.2 186.0
调整后净收入
可归因的(损失)
AK钢控股
公司(35.1)48.0 107.4 200.5
调整后的EBITDA 47.2 135.5 446.5 563.4
净收入(损失)
稀释股份
可归因于AK
钢夹持
公司$(0.17)$0.11$0.04$0.59
盈利电话会议
由于与克利夫兰-克利夫斯公司的合并,AK钢铁公司将不会在第四季度召开财报电话会议。
AK钢
AK钢是主要用于汽车、基础设施和制造(包括电力)、经销商和变流器市场的平板碳、不锈钢和电工钢产品的领先生产商。通过其子公司,公司还提供客户解决方案的碳和不锈钢管材产品,热和冷冲压零件,模具设计和模具。该公司总部设在俄亥俄州西切斯特(大辛辛那提),在美国、加拿大和墨西哥的制造部门拥有大约9300名员工,在西欧拥有工厂。有关AK钢铁公司的更多信息,请访问www.aksteel.com。
前瞻性陈述
在本报告中以参考方式作出或纳入的某些陈述反映了管理层的估计和信念,旨在成为1995年“私人证券诉讼改革法”安全港条款中确定的“前瞻性陈述”。诸如“预期”、“预期”、“相信”、“打算”、“计划”、“估计”等对未来时期的类似提法,通常都能识别出前瞻性的陈述。
该公司提醒读者,前瞻性声明反映了公司当前的信念和判断,但并不能保证未来的业绩或结果。这些假设和估计的基础是一些固有的受经济、竞争、监管和运营风险、不确定因素和公司无法控制的意外情况影响的假设和估计,以及对未来业务决定和可能发生变化的条件的假设。
前瞻性陈述仅仅是预测,涉及风险和不确定性,导致实际事件或表现可能因某些风险因素而与此类预测大不相同。这些因素可能导致公司的实际结果和财务状况与这些前瞻性报表所设想的结果大不相同,包括:与高度竞争性和周期性行业相关的销售价格、出货量和利润下降;国内和全球钢铁产能过剩;与美国政府就影响贸易的贸易协定、条约或政策采取行动有关的风险;原材料、供应和能源成本的变化;公司的大量债务和其他义务;公司一个或多个主要客户或关键供应商的严重财务困难或破产;该公司对汽车市场的销售占很大比例;由于铝或其他产品的竞争,主要产品市场的需求减少
道琼斯通讯社
2020年2月20日晚上07:00(格林尼治时间12:00)