AK Steel Holding (AKS)

Full Year 2004 Results

For the year ended December 31, 2004, AK Steel reported net income of $238.4 million, equal to $2.18 per diluted share of common stock compared to a net loss of $560.4 million, equal to $5.17 per diluted share for 2003. The 2004 results reflect a tax benefit of $223.8 million, a net gain of $201.4 million from the sale of non-core assets, net income from discontinued operations of $6.5 million and the previously discussed fourth quarter corridor charge, as well as total pre-tax charges of $8.7 million associated with the early retirement of debt.

The 2003 net loss includes the effects of the previously discussed corridor charge, in addition to a goodwill impairment charge of $101.2 million, which were partially offset by after-tax income of $34.0 million from discontinued operations.

AK Steel said it realized an adjusted operating profit for 2004 of $251.1 million, equal to $40 per ton, excluding the fourth quarter corridor charge previously discussed. For 2003, AK Steel’s adjusted operating loss was $310.5 million, equal to a loss of $53 per ton, excluding the applicable corridor charge and the goodwill impairment charge previously discussed. Including the applicable corridor charges, AK Steel reported an operating loss of $79.7 million for the year ended December 31, 2004, compared to an operating loss of $651.8 million in 2003.

Excluding the corridor charge and the charge associated with the early retirement of debt, AK Steel had 2004 adjusted income from continuing operations before income taxes of $146.2 million, compared to an adjusted loss, excluding the applicable corridor charge in 2003 of $431.7 million. Including the corridor and early debt retirement charges, AK Steel reported a loss before income taxes from continuing operations in 2004 of $193.3 million, compared to a 2003 loss from continuing operations before income taxes of $773.0 million, including the applicable corridor charge and a goodwill impairment charge of $101.2 million.

Net sales for 2004 were a record $5,217.3 million, on record shipments of 6,252,600 tons. By comparison, net sales for 2003 were $4,041.7 million, on shipments of 5,830,800 tons. The company said its average steel selling price in 2004 was $833 per ton, an increase of 23% over its 2003 average selling price of $677 per ton.

“AK Steel employees responded in 2004 beyond our high expectations, helping us deliver the best safety, quality, productivity and operating cost performances in the history of this company and its predecessors,” said James L. Wainscott, president and CEO. “These performances enabled AK Steel to better serve our existing and new customers during one of the most robust markets for flat-rolled steel on record,” he said.

Mr. Wainscott noted that employees at the company’s Rockport Works set a new annual world production record for galvanizing steel in 2004 of 1,045,000 tons, eclipsing a record they set in 2003 of 1,028,000 tons.