MiddletownJournal.com

WEST CHESTER TWP. — AK Steel Corp. officials announced Tuesday, Oct. 21, that its earnings jumped 74 percent in the third quarter as the result of higher metal prices outpacing weaker demand from the automotive, appliance and construction markets.

The local steelmaker earned $188.3 million, or $1.67 per share, in the quarter, compared with $108.4 million, or 97 cents a share, during the same period last year. Net sales also climbed 25 percent to $2.16 billion.

The average selling price for the third quarter also rose 36 percent to a record $1,462 per ton over the $1,074 price the West Chester Twp.–based company saw last year.

"AK Steel has repeatedly demonstrated its ability to overcome adversity," said Jim Wainscott, AK Steel's president, chairman and chief executive.

"We will draw on that experience and our inherent manufacturing flexibility to navigate the bumpy economic road that lies ahead."

The company did see its shipments fall to 1.48 million tons from 1.60 million tons in the same period during 2007 as a result of lower demand from automotive, appliance and construction markets. This was partially offset by higher shipments to service centers that distribute steel, the company said.

For the fourth quarter, AK Steel officials said they expect shipments of about 1.4 million tons, lower raw material and energy costs about a 10 percent drop in the average per-ton selling prices they saw in the third quarter.

The steelmaker expects

an operating profit of about $100 per ton, compared with $210 per ton in the third

quarter.

In addition to its earnings report, the company's board authorized a stock repurchase of up to $150 million.

The buyback replaces a previous share repurchase program begun in 2000, officials said.