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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q/A
Amendment No. 1 to Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarter ended March 31, 1999 Commission File No. 1-13696
AK STEEL HOLDING CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 31-1401455
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
703 Curtis Street, Middletown, Ohio 45043
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (513) 425-5000
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to filing requirements for
the past 90 days.
Yes X No
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Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date.
59,605,163 shares of common stock
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(as of June 28, 1999)
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AK STEEL HOLDING CORPORATION
INDEX
Item 2. Amended Year 2000 Disclosure Filed Herewith
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Item 2. Amended Year 2000 Disclosure
The undersigned registrant hereby amends its Quarterly Report on
Form 10-Q for the period ended March 31, 1999 to restate the Year
2000 disclosure to include the amount of cost incurred to date,
describe a worst case scenario and to discuss contingency
planning.
Year 2000 Issue
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The year 2000 issue arises from the design of computer operating
systems and computer software programs which recognize only two
digits in the date field and, as a result, may interpret "00"
incorrectly as the year 1900 instead of as the year 2000. Such
incorrect recognition has the potential to disrupt both business
systems and process control systems, of which the latter could
directly impact the manufacturing process.
The Company has assessed and essentially completed all necessary
modifications and upgrades to its business systems to be year 2000
compliant. Additionally, with the assistance of outside
consultants, the Company has assessed and essentially completed
all necessary modifications and upgrades to its process control
systems to be year 2000 compliant. The Company plans to complete
testing of its business and process control systems by September
30, 1999.
In addition, the Company has responded to numerous customer
inquiries on the year 2000 issue. Inquiries have also been made
of the Company's major suppliers as to their year 2000 readiness.
Electronic data interchange testing with customers and suppliers
is expected to be completed by September 30, 1999.
The Company currently estimates its expenditures for year 2000
compliance will approximate $5.0 million of which $1.7 million has
been incurred to date. Costs are expensed as incurred and paid
from general corporate funds and approximate 10% of the
information technology budget. Additional expenditures, if any,
beyond this amount could be required based on the nature and
extent of required modifications or upgrades identified during
testing.
Based upon internal assessments, formal communications with
suppliers and customers and work completed to date, the Company
believes that year 2000 issues should not pose significant
operational problems or have a material impact on the Company's
consolidated financial position, results of operations or cash
flow. A failure of third party vendors or customers to be year
2000 ready, however, could adversely affect these beliefs and is
not quantifiable. Such failure could have a material adverse
effect on the Company's consolidated financial position, results
of operations or cash flow in a given period, but probably not
over the long-term. The most reasonably likely worst case
scenario of failure by the Company or its suppliers or customers
to resolve year 2000 problems would be a temporary slowdown or
cessation of manufacturing operations at one or more of the
Company's facilities and a temporary inability on the part of the
Company to timely process orders and to deliver finished products
to customers. Delays in meeting customers' orders would affect
the timing of billings to and payments received from customers
with respect to orders and could result in other liabilities.
Customers' year 2000 problems could also delay the timing of
payments to the Company for orders. We are currently conducting
on site year 2000 audits of our key suppliers as a safeguard
against a worse case scenario. We are actively working to
complete contingency plans should unplanned situations arise on
January 1, 2000.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed on behalf of the registrant by
the following duly authorized persons.
AK Steel Holding Corporation
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(Registrant)
Date June 29, 1999 /s/ James L. Wainscott
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James L. Wainscott
Vice President, Treasurer
and Chief Financial Officer
Date June 29, 1999 /s/ Donald B. Korade
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Donald B. Korade
Controller
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