AK Steel, headquartered in West Chester, Ohio, has announced that James L. Wainscott, who has served as president and CEO since October of 2003 and chairman of the board since January of 2006, intends to retire as president and CEO, effective Jan. 1, 2016.
After Jan. 1, Wainscott will serve as chairman of the board of directors in a nonexecutive capacity.
Related to this change, the AK Steel board of directors made the following appointments, effective Jan. 1, 2016:
- Roger K. Newport, age 50, is appointed CEO and a member of the board of directors;
- Kirk W. Reich, age 47, is appointed president and chief operating officer reporting to Roger Newport; and
- James L. Wainscott, age 58, will continue to serve as chairman of the board of directors.
“Roger Newport is a fabulous choice to lead AK Steel as our company’s next CEO,” says Wainscott. “He has the vision, strategic focus and the tenacity necessary to lead our company into the future. I am confident that Roger will do an excellent job in designing and executing our company’s strategy, and his leadership will help position the company for sustained success in the years ahead. He will do a terrific job as CEO on behalf of AK Steel’s employees, customers, shareholders and other important constituents.”
Commenting on Reaich’s appointment as president and COO, Wainscott says, “Kirk Reich is a terrific choice to serve as AK Steel’s next president and COO. He embraces our company’s culture, heritage and tradition of manufacturing some of the finest quality carbon, stainless and electrical steels available anywhere. I am confident that Kirk will do an excellent job in his new roles while maintaining the company’s focus on industry-leading safety, quality and productivity measures, and serving customers better than any other steelmaker.”
James Thomson, lead independent director, adds, “The board is grateful to Jim Wainscott for his 12 years of leading the company as president and CEO and his more than 20 years of contributions to AK Steel. Without Jim’s strong leadership of AK Steel during difficult times, AK Steel would be a very different company than the one it is today. His leadership, including rebuilding relationships, the investments and acquisitions he has led, and the company’s renewed commitment to research and innovation, has positioned AK Steel well for future success.”
Wainscott joined AK Steel as vice president and treasurer in 1995. He was named chief financial officer in 1997; president, CEO and a member of the board of directors in 2003; and chairman of the board of directors in 2006. Before joining AK Steel, Wainscott held a number of executive level positions with National Steel Corporation, and was elected treasurer and assistant secretary of national steel in 1993. In addition to his leadership of AK Steel, he serves as a member of the board of directors of Parker-Hannifin Corporation. He is a former chairman of the American Iron and Steel Institute (AISI) and past chair of the Steel Market Development Institute.
Newport started his career with the company in 1985 in the accounting department and advanced through a number of increasingly responsible finance, sales and marketing roles at the corporate headquarters and the company’s Middletown Works. He was named controller in 2001, and chief accounting officer in 2004. He was named vice president, business planning and development in 2010, and vice president, finance and chief financial officer in 2012. He was named senior vice president, finance and chief financial officer in 2014, and executive vice president, finance and chief financial officer in 2015. Newport is a member of the board of directors of the American Iron and Steel Institute and the World Steel Association, and chairman of the Steel Market Development Institute CEO Group.
Reich began his career with the company in 1989 in the engineering department at the company’s Middletown Works. He has extensive engineering, operations and maintenance experience, having led the company’s Middletown and Mansfield plants. He was named general manager, Mansfield Works in 2000; general manager, Middletown Works in 2006; vice president, Specialty Steel Operations in 2010; and vice president, Procurement and Supply Chain Management in 2012. He was named senior vice president, Manufacturing in 2014, and executive vice president, Manufacturing in 2015.
In late October the company also delivered its financial reports for the third quarter of 2015, reporting a net income of $6.7 million for the third quarter of 2015, compared with a net loss of $7.2 million for the third quarter of 2014 and a net loss of $64.0 million for the second quarter of 2015. For the first nine months of 2015, the company reports a net loss of $363.6 million.
Commenting on the results, Wainscott says, “Despite facing the continued onslaught of what we believe are unfairly traded carbon steel imports, we experienced our best quarterly financial performance in nearly six years.”
Wainscott cites a combination of record quarterly automotive shipments, stable operations, and lower raw material costs for the results, as well as cost savings from the continued integration of Dearborn Works and other cost reduction initiatives.