AK Steel Holding
, a producer of flat-rolled carbon, stainless and electrical steel products and other steel products, said Tuesday it swung to profit in its third quarter, helped by higher steel prices.
The Middletown, Ohio-based company earned $26 million, or 23 cents a share, in the quarter, compared with a loss of $29 million, or 26 cents a share, a year ago. Excluding 10 cents a share charge related to the implementation of new labor agreements at the company's Zanesville, Ohio and Butler, Pa. operations and 3 cents a charge related to reduction in the value of a deferred tax asset, the company earned 36 cents a share. Analysts were expecting earnings of 34 cents a share.
Third-quarter revenue rose 11.5% from a year ago to $1.55 billion, on shipments of 1.52 million tons, compared with 1.69 million tons shipped in the year-ago quarter. Analysts were expecting a revenue of $1.53 billion in the most recent quarter.
The company expects to ship about 1.5 million tons in the fourth quarter. Operating profit for the fourth quarter is expected to be $30 a shipped ton to $35 a shipped ton.
AK Steel posted a third-quarter operating income of $55.1 million, or $36 a ton, compared with an operating loss of $25.5 million, or $15 a ton, a year ago.
The company said its average selling price was $1,020 a ton, up from $825 a ton in the third quarter of 2005.
Shares slipped 13 cents to $14.87.
This story was created through a joint venture between TheStreet.com and IRIS.