AK Steel reports Q3 earnings, $55m expansion plan

AK Steel reported this week strong Q3 earnings, and that it will spend $55 million to expand its electrical steel production capacity by 12 percent. The Middletown, Ohio-based flat rolled producer reported this week net earnings of $26 million in the third quarter of 2006 compared to a loss of $29 million in the same quarter of last year. Third quarter revenue rose 11.5 percent from the year-ago period to $1.55 billion. The company attributed these strong earnings to higher steel prices. AK Steel also announced Monday it will spend $55 million upgrade production equipment at its Zanesville, and Butler, Pennsylvania plants, in addition to the $14 million project to expand production at the Butler plant, which began in April and will be completed in early 2007. By mid-2008, the two investments combined will expand AK Steel's production capacity for electrical sheet by 12 percent, to about 335,000 net tons per year, the company said. The company also announced Monday that it will make a $75 million contribution to its pension trust fund during the fourth quarter.