AK Steel announces financial results for 2002 and Q4

AK Steel announces financial results for 2002 and Q4

AK Steels reported a net loss of $ $489.7 million for the fourth quarter of 2002. Operating profit, excluding the unusual items for the quarter was $36.9 million, or $26 per ton shipped according to the released reports. As per the report published on the company's official site, there were two unusual items included in the quarterly net loss. These consist, a non-cash, after-tax charge of $483.8 million, related to recognition of actuarial net losses associated with the company's pension and retiree benefit plans. The company said the non-cash pension and health care charge was expected and in line with previously announced estimates. The second unusual item was an after-tax write-down of $6.5 million, related to the company's equity investment in EVTAC, a taconite iron ore mining and processing facility in Minnesota. The write-down was a result of the company's decision to purchase most of its iron ore requirements from suppliers other than EVTAC, as well as EVTAC's loss of other major customers. For the full year 2002, AK Steel reported a net loss of $502.4 million. Annual revenues were $4,289 million on steel shipments of 5,803,700 tons. AK Steel's average selling price for the year was $703 per ton, up from $655 per ton in 2001. Operating profit was $129.3 million, or $22 per shipped ton. Excluding all unusual items for the year, operating profit was $105.4 million, or $18 per shipped ton. The company ended the year with $282.5 million in cash, up from $101.0 million at the end of 2001. Headquartered in Middletown, Ohio, AK Steel produces flat-rolled carbon, stainless and electrical steel products for automotive, appliance, construction and manufacturing markets, as well as tubular steel products. Furthermore the company has steel producing and finishing facilities in Ohio, Kentucky, Pennsylvania and Indiana. The company has signed an Asset Purchase Agreement for acquiring substantially all of the steelmaking and finishing assets of National Steel Corp. for $1.125 billion.$200 million of the total offer covers the assumption of certain liabilities and the remaining $925 million would be payable to National in cash, with $450 million of that amount for net working capital. The AK Steel offer exceeded the previously placed offer by US Steel. National Steel, headquartered in Mishawaka, Ind., filed a voluntary petition under Chapter 11 of the Bankruptcy Code in March of 2002, but has continued to operate its facilities. National operates steel producing and finishing facilities in Indiana, Illinois and Michigan.