*DJ AK Steel 4Q Loss/Shr 17c >AKS
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February 20, 2020 07:00 ET (12:00 GMT)
*DJ AK Steel 4Q Loss $53.9M >AKS
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February 20, 2020 07:00 ET (12:00 GMT)
*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
(MORE TO FOLLOW) Dow Jones Newswires
February 20, 2020 07:00 ET (12:00 GMT)
*DJ AK鋼4Q損失/Shr 17c>AKS
道瓊斯通訊社(212-416-2800)
2020年2月20日晚上07:00(格林尼治時間12:00)
*DJ AK鋼4Q虧損$5390萬>AKS
道瓊斯通訊社(212-416-2800)
2020年2月20日晚上07:00(格林尼治時間12:00)
*DJ AK鋼4Q銷售額1.45億美元>AKS
道瓊斯通訊社(212-416-2800)
2020年2月20日晚上07:00(格林尼治時間12:00)
新聞稿:AK鋼鐵公司公佈2019年第四季度和全年財務業績
AK鋼鐵公司公佈2019年第四季度和全年財務業績
俄亥俄州西切斯特,2020年2月20日(環球新聞社)--AK鋼鐵公司(紐約證券交易所市場代碼:AK)今天公佈了其2019年第四季度和全年的財務業績。
2019年第四季度
-2019年第四季度淨虧損5 390萬美元,即每稀釋一次淨虧損0.17美元
調整後淨虧損3 510萬美元,或稀釋後每股0.11美元
-2019年第四季度調整後的EBITDA 4 720萬美元
-2019年第四季度銷售額14億美元
2019年全年
-2019年全年淨收入1 120萬美元,或稀釋後每股0.04美元;
調整後淨收入為1.074億美元,或稀釋後每股0.34美元
-2019年全年調整後的EBITDA 4.465億美元
-2019年全年銷售額64億美元
AK鋼鐵首席執行官羅傑·K·紐波特(Roger K.Newport)表示:“面對第四季度極具挑戰性的市場環境,我們的經營狀況良好。”“我們在10月份成功地完成了迪爾伯恩(Dearborne)工廠一次計劃中的重大維修中斷,並對高爐和鍊鋼業務進行了重大投資,這將帶來大量經常性成本節約。此外,在第四季度,我們與克利夫蘭-克利夫斯公司(克利夫蘭-克利夫斯公司)達成了合併協議。我們繼續對這筆交易的創造價值潛力感到興奮,我們預計交易將於3月13日結束,但須經監管審查和股東批准。”
AKSteel報告稱,2019年第四季度淨虧損5,390萬美元,即每股稀釋普通股淨虧損0.17美元。相比之下,2018年第四季度的淨利潤為3,350萬美元,即每股稀釋後的0.11美元。在2019年第四季度,該公司在資產負債表上又邁出了一大步,進行了6.156億美元的養老金年金交易,自2016年以來,通過年金交易轉移的養老金債務總額約為11億美元。因此,該公司在第四季度支付了2 690萬美元的非現金養老金結算費用,即每股稀釋後的0.08美元。同樣在第四季度,該公司完成了其Ashland工廠塗裝線的所有產品的過渡,並按計劃關閉了該工廠。此外,該公司記錄的貸方為810萬美元,即每股稀釋後的0.02美元,以反映對以前記錄的Ashland工廠關閉費用的調整。不包括這些項目,2019年第四季度調整後的淨虧損為3,510萬美元,即稀釋後每股0.11美元。相比之下,去年第四季度調整後的淨利潤為4,800萬美元,即每股稀釋後的0.16美元。在去年第四季度公佈的業績中,包括了1450萬美元的非現金養老金結算費用,即每股0.05美元。
該公司調整後的EBITDA(如下文“非GAAP財務措施”一節所定義)在2019年第四季度為4720萬美元,佔淨銷售額的3.3%,而去年第四季度經調整的EBITDA為1.355億美元,佔淨銷售額的8.1%。與去年第四季度相比,導致這一下降的原因是現貨市場銷售價格大幅下跌,主要由於通用汽車罷工,汽車市場出貨量減少,以及今年第四季度鐵礦石、煤炭和焦炭成本上升。這些挑戰不僅抵消了廢料和能源成本的降低。該公司2019年第四季度的計劃停運成本也比2018年第四季度的1490萬美元高出3440萬美元。
截至2019年,該公司的總流動資金為8.354億美元,包括現金和現金等價物以及根據該公司的循環信貸機制提供的8.046億美元。在2019年期間,該公司將未償還的長期債務減少了2 490萬美元,其養老金和其他退休後福利債務減少了1.098億美元。2019年11月,該公司利用其循環信貸工具,在到期時贖回了其1.485億美元可兑換高級債券本金總額。
2019年全年結果
AKSteel公佈2019年淨利潤為1,120萬美元,即每股稀釋普通股0.04美元。相比之下,2018年的淨利潤為1.86億美元,即每股稀釋後的0.59美元。在對上述養卹金結算費用2 690萬美元和阿什蘭工廠關閉費用6 930萬美元進行調整後,2019年調整後的淨收入為1.074億美元,即每股稀釋後的0.34美元。相比之下,2018年調整後的淨利潤為2億50萬美元,即每股稀釋後的0.64美元。2018年的報告結果中包括1 450萬美元的養卹金結算費用。我們在2019年支付了880萬美元與Ashland Works收費有關的現金,預計在2020年支付約2 500萬美元,隨後幾年支付剩餘款項。
該公司2019年調整後的EBITDA為4.465億美元,佔淨銷售額的7.0%,而一年前調整後的EBITDA為5.634億美元,佔淨銷售額的8.3%。這一下降的主要原因是鋼材現貨市場的銷售價格大幅下降,對汽車和分銷商及轉爐市場的發貨量減少,以及2019年鐵礦石、煤炭和焦炭的成本上升。這些因素不僅抵消了較高的汽車市場銷售價格、較低的停運成本、能源和某些原材料(包括廢料和合金)的成本,而且與一年前相比,鐵礦石衍生品的未實現收益也有所增加。該公司在2019年的主要維修中斷成本為8,100萬美元,而2018年為9,110萬美元。在2019年的業績中,鐵礦石衍生品的市盈率為4,960萬美元,其中約三分之二與未來幾年購買鐵礦石有關。2019年的財務業績未包括在內的是鐵礦石衍生品合約的實際收益3 590萬美元,這些收益是在該公司前幾個季度的財務業績中確認為市價收益的時期內結算的,而2018年同期為2 190萬美元。2018年,該公司實現了20萬美元的市盈率。
(百萬美元,
除每股及截至十二個月止的三個月外
(每噸數據)12月31日,12月31日,
2019 2018 2019 2018
扁軋鋼
裝運(千噸)1 259.5 1 388.7 5 342.2 5 683.4
銷售價格
扁軋鋼
1,027美元1,106美元1,078美元1,091美元
淨銷售額1 445.7美元1 677.1美元6 359.4美元6 818.2美元
營業利潤10.4 86.5 209.3 364.4
淨收入(損失)
可歸因於AK
鋼夾持
公司(53.9)33.5 11.2 186.0
調整後淨收入
可歸因的(損失)
AK鋼控股
公司(35.1)48.0 107.4 200.5
調整後的EBITDA 47.2 135.5 446.5 563.4
淨收入(損失)
稀釋股份
可歸因於AK
鋼夾持
公司$(0.17)$0.11$0.04$0.59
盈利電話會議
由於與克利夫蘭-克利夫斯公司的合併,AK鋼鐵公司將不會在第四季度召開財報電話會議。
AK鋼
AK鋼是主要用於汽車、基礎設施和製造(包括電力)、經銷商和變流器市場的平板碳、不鏽鋼和電工鋼產品的領先生產商。通過其子公司,公司還提供客户解決方案的碳和不鏽鋼管材產品,熱和冷衝壓零件,模具設計和模具。該公司總部設在俄亥俄州西切斯特(大辛辛那提),在美國、加拿大和墨西哥的製造部門擁有大約9300名員工,在西歐擁有工廠。有關AK鋼鐵公司的更多信息,請訪問www.aksteel.com。
前瞻性陳述
在本報告中以參考方式作出或納入的某些陳述反映了管理層的估計和信念,旨在成為1995年“私人證券訴訟改革法”安全港條款中確定的“前瞻性陳述”。諸如“預期”、“預期”、“相信”、“打算”、“計劃”、“估計”等對未來時期的類似提法,通常都能識別出前瞻性的陳述。
該公司提醒讀者,前瞻性聲明反映了公司當前的信念和判斷,但並不能保證未來的業績或結果。這些假設和估計的基礎是一些固有的受經濟、競爭、監管和運營風險、不確定因素和公司無法控制的意外情況影響的假設和估計,以及對未來業務決定和可能發生變化的條件的假設。
前瞻性陳述僅僅是預測,涉及風險和不確定性,導致實際事件或表現可能因某些風險因素而與此類預測大不相同。這些因素可能導致公司的實際結果和財務狀況與這些前瞻性報表所設想的結果大不相同,包括:與高度競爭性和週期性行業相關的銷售價格、出貨量和利潤下降;國內和全球鋼鐵產能過剩;與美國政府就影響貿易的貿易協定、條約或政策採取行動有關的風險;原材料、供應和能源成本的變化;公司的大量債務和其他義務;公司一個或多個主要客户或關鍵供應商的嚴重財務困難或破產;該公司對汽車市場的銷售佔很大比例;由於鋁或其他產品的競爭,主要產品市場的需求減少
道瓊斯通訊社
2020年2月20日晚上07:00(格林尼治時間12:00)