US Steel, AK Steel Post Weaker 3Q Results

DANIEL LOVERING

PITTSBURGH (AP) — Two American steelmakers posted sharply lower third-quarter results Tuesday, as demand for the metal used in manufacturing and construction remained muted amid the global economic downturn.

But orders improved from historically low levels earlier in the year, helped by rising demand from the auto industry.

Still, the market for steel — used in consumer goods ranging from pickup trucks to soup cans — pales in comparison to levels seen during much of last year, when surging prices helped steel makers reap record profits.

That rally ended abruptly last fall, when the global recession devastated some of the steel industry's biggest customers in the auto, construction and industrial equipment markets. Orders vanished, forcing companies like United States Steel Corp. and AK Steel Holding Corp. to scale back production and lay off workers.

The companies' results disappointed investors and some analysts, sending their shares down more than 7 percent. Shares of U.S. Steel fell $3.17, or 7.8 percent, to close at $37.41, while AK Steel shares sank $1.61, or 8.6 percent, to $17.18.