(RTTNews) - Steel manufacturer AK Steel Holding Corp. (AKS: News ) on Tuesday reported a sharp decline in third-quarter profit, as sales fell more than half from last year, hurt by lower shipments and average sales price. However, the company's results came in above the analysts' expectations.

The West Chester, Ohio-based company reported net income attributable to AK Steel Holding of $6.2 million or $0.06 per share, compared to $188.3 million or $1.67 per share in the year-ago quarter. Net income for the quarter fell to $5.7 million from $188.5 million a year ago.

On average, 12 analysts polled by Thomson Reuters expected the company to report $0.01 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter more than halved to $1.04 billion from last year's $2.16 billion, but topped the eight analysts' consensus estimate of $1.03 billion.

The company had shipments of 1,047,800 tons, down from shipments of 1,476,300 tons in the prior-year quarter. Average selling price for the quarter was $994 per ton, approximately 32% lower than the $1,462 per ton average price realized in the third quarter of 2008.

Operating profit for the recent quarter was $15.3 million, or $15 per ton, compared to $309.6 million, or $210 per ton, for the third quarter of 2008.

For the first nine months of 2009, AK Steel posted a net loss attributable to AK Steel Holding of $114.4 million or $1.05 per share, versus a profit of $434.6 million or $3.85 per share in the year-ago period. Net loss was $115.9 million, compared to a profit of $435 million in the corressponding period of 2008. Sales for the period plunged to $2.76 billion from $6.18 billion in the comparable period.
Looking ahead, AK Steel expects to generate an operating profit ranging from $30 to $35 per ton. The company also expects to incur a non-cash charge of about $5.0 million or $0.05 per share, primarily due to a decrease in the value of its deferred tax assets as the result of state tax law changes.

Fourth-quarter shipments are anticipated to be approximately 1,300,000 tons, while average per-ton selling price is projected to decline approximately 2% compared to the third quarter of 2009 level.

In a separate communique, AK Steel declared a quarterly cash dividend of $0.05 per common share, payable on December 10, to shareholders of record on November 13, 2009

Among others in the industry, United States Steel Corp. (X) reported third-quarter net loss attributable to the company was $303 million, or $2.11 per share, compared to net income of $919 million, or $7.79 per share, in the third quarter of 2008. Net sales for the quarter were $2.82 billion, down from $7.31 billion in the prior year quarter.

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