WEST CHESTER — AK Steel said Monday, Jan. 25, it turned a fourth-quarter profit of $39.8 million, or 36 cents per diluted share, as demand for steel improved in the midst of a tough pricing environment.

In the fourth quarter 2008, the company lost $430.6 million, or $3.87 per diluted share, when AK Steel experienced $699.5 million in pre-tax, non-cash pension charges.

Net sales for the quarter reached $1.3 billion versus sales of $1.5 billion in the final quarter of 2008. In the fourth quarter, the company shipped 1.4 million tons while during the comparable period in 2008 it shipped 1.1 million tons.

Executives in a statement said that while demand grew in 2009, the average selling price for steel products were lower than a year ago.

For all of 2009, AK Steel lost $74.6 million, or 68 cents per share, versus a profit of $4 million, or 4 cents per share, for 2008.

Net sales were $4.1 billion, on shipments of 3.9 million tons, versus net sales of $7.6 billion, on shipments of 5.9 million tons in 2008.

Fourth quarter and annual results include a $5.1 million charge related to a state tax law change.

James Wainscott, AK Steel’s top executive, in a statement said the company had emerged stronger from last year’s tough economy.

“Our quick action and relentless focus on the fundamentals in 2009 allowed us to return to operating and net profitability by the third quarter, and we expect to build upon that success in 2010,” said Wainscott, chairman, chief executive and president.