AK Steel Swings to 4Q Profit

http://www.chron.com/disp/story.mpl/ap/fn/5475599.html

By TERRY KINNEY Associated Press Writer
© 2008 The Associated Press

CINCINNATI — AK Steel Holding Corp. had record revenue and shipments in 2007 and starts the new year healthier than imaginable when his management team took over four years ago, Chief Executive James Wainscott said Tuesday.

The company, with headquarters in suburban West Chester, earned $106.7 million, or 95 cents a share, in the three months ended Dec. 31, after a loss of $49.3 million, or 45 cents a share, a year ago during a long lockout when results included a $133.2 million charge for retiree health care benefits.

Fourth-quarter revenue rose 7 percent to $1.69 billion from $1.58 billion a year ago. At that time, AK was operating its nearby Middletown Works with replacement workers. When a new contract was reached with union workers to end a nearly 13-month lockout, the company had shed about 1,000 jobs.

For the year, AK Steel reported net income of $387.7 million, or $3.46 a share, compared with $12 million, or 11 cents a share in 2006. Net sales rose to $7 billion for the first time on shipments of 6.5 million tons, compared with $6.1 billion and 6.2 million tons in 2006.

Analysts surveyed by Thomson Financial were expecting a profit of 59 cents per share on revenue of $1.68 billion for the quarter and a profit of $3.07 a share for the year.

"Our plan is working, and we're on the right track," Wainscott told analysts in a conference call. "Looking back, 2006 was a defining year; 2007 was a breakthrough year that very few thought was possible four years ago.

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