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AK Steel Holding Management Discusses Q2 2012 Results - Earnings Call Transcript

Our comments today will include forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Included among those forward-looking statements will be any comments concerning our expectations as to future shipments, product mix, prices, costs, operating profit or liquidity. Please note that our actual results may differ materially from what is contained in the forward-looking statements provided during this call. Information concerning factors that could cause such material differences in results is contained in our earnings release issued earlier today. Except as required by law, the company disclaims any obligation to update any forward-looking statements to reflect future developments or events. To the extent we refer to material information that includes non-GAAP financial measures, the reconciliation information required by Regulation G is available on the company's website at

With that, I'll turn it over to Jim for his comments. Jim?

James L. Wainscott

Thanks very much, Al. Good morning, everyone, and thanks to each of you for joining us on today's call. Excluding the deferred tax asset valuation allowance, which Roger will cover in some detail in a moment, AK Steel's second quarter 2012 results represented a significant improvement compared to our first quarter of this year performance as we increased our operating profit to $42 per ton in Q2, compared to only $3 per ton in Q1. In many respects, it was our best quarter since the second quarter of 2011 when we generated an operating profit of $46 per ton.

Quarter-over-quarter, EBITDA nearly doubled as we generated EBITDA of about $88 million for Q2 compared to about $48 million for Q1 of 2012. Thanks to strong cost and outstanding quality performances, we exceeded our earnings guidance for Q2, again, excluding the charge for the deferred tax asset allowance. Despite the challenges of a sluggish domestic and foreign economies and their impacts on our shipment volumes and selling prices at AK Steel, we remain keenly focused on 3 things: first, taking care of our people and keeping them safe; second, serving our customers better than any other steelmaker and providing them with the best possible quality steel products available anywhere; and third, creating long-term value for our shareholders. This has been our approach, and going forward, it will continue to be our focus. So with those things in mind, let me take a moment to comment briefly on how well we're performing on each objective.

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