AK Steel Holding (AKS)

AK Steel Reports Third-Quarter 2006 Results

MIDDLETOWN, OH, October 24, 2006 – AK Steel (NYSE: AKS) today reported third-quarter 2006 net income of $26.0 million, or $0.23 per share of common stock. The 2006 third-quarter results included a one-time pre-tax charge of $15.8 million ($10.7 million after-tax, or $0.10 per share), related to the implementation of new labor agreements at the company’s Zanesville, Ohio and Butler, Pennsylvania operations, as well as a $3.0 million, or $0.03 per share, reduction in the value of a deferred tax asset due to recent state tax law changes. Excluding these items, third-quarter 2006 net income would have been $39.7 million, or $0.36 per share of common stock. In the year-ago third quarter, AK Steel reported a net loss of $29.0 million, or $0.26 per share.

The company said the $10.7 million after-tax charge was related primarily to pension curtailment costs associated with the new labor agreements and the initial funding of a Voluntary Employees’ Beneficiary Association (VEBA) health care fund covering Butler hourly employees. The $3.0 million charge was primarily related to a change in Pennsylvania state tax law.

Net sales for the third quarter of 2006 were a record $1,553.6 million on shipments of 1,522,600 tons. Third-quarter 2006 sales were about 12% higher and shipments were about 10% lower than in the year-ago period. The company’s average selling price was a record $1,020 per ton in the third quarter of 2006, compared to $825 per ton in the year-ago period. The lower year-over-year shipments reflect lower North American automobile and light truck production, as well as higher customer inventory levels and increased steel imports, which reduced distribution market shipments.

AK Steel reported operating profit of $55.1 million, or $36 per ton, in the third quarter of 2006, compared to an operating loss of $25.5 million, or $15 per ton, in the third quarter of 2005. Excluding one-time, pre-tax labor contract charges of $15.8 million, third-quarter 2006 operating profit would have been $70.9 million, or $47 per ton. A reconciliation of charges to adjusted net income and operating profit is illustrated by the following chart:

“In a defining year, AK Steel’s most recent operating and financial results continued a steady upward trend,” said James L. Wainscott, chairman, president and CEO. “Although we recently have seen some slowing in a few of our key carbon steel markets, we anticipate continued strong demand during the fourth quarter for our stainless and electrical products.”

-more-

AK Steel Reports Second Quarter 2006 Results

MIDDLETOWN, OH, July 25, 2006 – AK Steel (NYSE: AKS) today reported net income of $29.1 million, or $0.26 per share of common stock, for the second quarter of 2006. Net sales were a record $1,497.3 million, a 3% increase from the year-ago quarter, on shipments of 1,599,100 tons, compared to 1,610,500 tons shipped in the second quarter of 2005. Operating profit was $63.0 million, or $39 per ton, compared to $74.2 million, or $46 per ton, for the second quarter of 2005. The company said that its average selling price was $936 per ton in the second quarter of 2006, up from $903 per ton in the second quarter of 2005.

In the year-ago period, AK Steel reported net income of $9.0 million, or $0.08 per share, which included a non-cash charge associated with state tax law changes of $29.5 million, or $0.27 per share. Without the charge, second quarter 2005 net income would have been $38.5 million, or $0.35 per share.

“AK Steel’s strong operating and financial performance across the board makes the second quarter of 2006 a defining quarter in what is a defining year for our company,” said James L. Wainscott, chairman, president and CEO. “By the end of the quarter, our temporary workforce was operating nearly every unit at Middletown Works at or above the levels prior to the onset of the labor dispute on March 1. In fact, the plant’s hot-dip galvanizing line set a production record June 23 that is unmatched in the 49-year history of that line.”

Negotiations continue with the AEIF, the independent union representing hourly Middletown Works employees, to reach a competitive new labor agreement following the February 28 expiration of the previous contract. The company said that, despite some movement on the part of the AEIF recently, the parties remain apart on crucial issues such as wages, benefits and workforce restructuring.

“Despite the slow progress in our Middletown contract talks, we continue to make strides to address the total employment cost disadvantage we face relative to our competitors,” said Mr. Wainscott. “For example, during the 2006 second quarter, AK Steel reached an early agreement with United Autoworkers (UAW) Local 4104 on a new, competitive labor contract at the company’s Zanesville (OH) Works.”

In addition, members of UAW Local 3303, which represents about 1,400 production and maintenance employees at AK Steel’s Butler (PA) Works ratified a new labor agreement on July 21. The new six-year-agreement replaces the current contract, which expires September 30, and addresses AK Steel’s strategic goal of improving its total employment costs to be competitive with other steelmakers. The new agreement also addresses health care cost-sharing for existing Butler Works retirees who had been members of the union during their active employment.

-more-

The UAW and AK Steel had jointly agreed to commence early contract talks on June 20, and the parties announced on July 17 that a tentative agreement had been reached. Since 2003, AK Steel has negotiated eight competitive new labor agreements with three different unions representing all of AK Steel’s hourly production and maintenance employees, with the exception of the Middletown Works.

Also during the 2006 second quarter, AK Steel notified about 4,600 of its current retirees that it will modify their health care benefit plans and require them to share in the cost of their health care benefits. Those changes will begin October 1, 2006. Currently, unlike most of the company’s retirees, AEIF retirees do not share in the cost of their health care benefits other than minimal office visit and drug co-pay fees.

AK STEEL REPORTS FIRST QUARTER 2006 RESULTS

MIDDLETOWN, OH, April 25, 2006 – AK Steel (NYSE: AKS) today reported net income of $6.2 million, or $0.06 per share of common stock, for the first quarter of 2006. Net sales were $1,435.9 million on shipments of 1,526,800 tons, a 1% increase in revenues on slightly higher shipments from the year-ago quarter. AK Steel said that its first quarter 2006 operating profit was $29.4 million, or $19 per ton, compared to $113.6 million, or $75 per ton, for the first quarter of 2005.

The company said its average selling price reached a quarterly record of $940 per ton in the first quarter of 2006, up from $934 per ton in the first quarter of 2005, and significantly higher than the $860 per ton average in the fourth quarter of 2005. The higher average selling price resulted primarily from the realization of price increases negotiated with the company’s contract customers and a more favorable product sales mix.

AK Steel said costs for carbon scrap, iron ore, coal and steel coating materials increased approximately $27 million above 2005 fourth quarter levels. In addition, the company recorded a $13 million LIFO charge in the 2006 first quarter, compared to an $18 million LIFO credit in the 2005 fourth quarter.

As previously announced, a lockout of approximately 2,700 hourly employees at the company’s Middletown (OH) Works began on March 1, following the expiration, on February 28, of a collective bargaining agreement between the company and the independent union that represents hourly employees at the plant. In order to continue meeting customer requirements, AK Steel implemented a contingency plan on March 1 to operate the Middletown plant with a temporary replacement workforce, resulting in approximately $13 million of additional costs in the quarter, principally for training and overtime. In addition, the company recognized costs of approximately $14 million related to fixed costs associated with the reduced level of operations at Middletown Works during March.

The company also incurred costs of nearly $11 million in the quarter for various maintenance outages at the Middletown Works, including a blast furnace outage the company elected to perform in early March to coincide with the reduced operating rate previously mentioned. Work was also accelerated in the quarter to complete the second phase of a project to install additional environmental controls on the Middletown blast furnace and steelmaking operations.

“Our 2006 first quarter was remarkable given the outstanding performance of our largest and most complex plant, Middletown Works, under the most difficult of circumstances,” said James L. Wainscott, chairman, president and CEO. “Middletown’s efforts were bolstered by record safety, productivity and quality elsewhere throughout the company. We enjoyed record quarterly sales of specialty stainless and electrical steel products, and we are quickly expanding our capacity to meet strong demand for those products.”

The company said its Middletown Works is currently staffed with about 1,500 temporary replacement and salaried employees, and is operating at about 85% of steelmaking capacity, with several key finishing operations producing at 100% of capacity. The company said that it expects to operate the entire plant at full capacity by the end of the second quarter with a replacement workforce should the labor dispute not be resolved by that time.

-more-

Safety performance during the first quarter was equal to the company’s best-ever quarterly performance, with Middletown Works establishing a new quarterly record. Overall, the company’s Occupational Safety and Health Act (OSHA) total injury rate was 0.19 for the first quarter of 2006, compared to its full-year 2005 rate of 0.36. The rate for Middletown Works in the first quarter was 0.13. In 2005, the integrated steel average rate was 5.43.

AK Steel ended the first quarter of 2006 with $475.2 million in cash and $531.5 million of availability under its credit facilities, up from $259.0 million in cash and $529.5 million in availability at the end of the first quarter of 2005.