AKS – Market expectations are for continued weakness in Uniform ROA, but management is confident about their pension plan, regulation, and third quarter performance

• AK Steel Holding Corporation (AKS:USA) currently trades at a material discount relative to UAFRS-based (Uniform) Assets, with a 0.6x Uniform P/B, implying bearish expectations for the firm. However, management is confident about their efforts to reduce pension plan volatility, adherence to environmental regulation, and third quarter performance
• Specifically, management is confident they have reduced their pension plan’s exposure to volatility, and that they follow U.S. environmental regulation to the best of their ability. Furthermore, they are confident their third quarter met expectations despite challenging market conditions.