MIDDLETOWN, Ohio -- AK Steel reports net income of $165.4 million, or $1.52 per share of common stock, for the first quarter of 2004. In the first quarter of 2003 the company reported a net loss of $40.8 million, or 38 cents per share of common stock.The latest quarterly results include the benefit of an after-tax gain of $174.9 million, or $1.61 per share of common stock, from the sale of Douglas Dynamics L.L.C. on March 31 for $264 million. During the first quarter, AK Steel reported a loss from continuing operations of $16.4 million, or 15 cents per share of common stock, a substantial improvement compared to a loss of $42.4 million, or 39 cents per share, from continuing operations in the first quarter of 2003. Douglas Dynamics was treated as a discontinued operation for this quarter-to-quarter comparison.Net sales in the first quarter of 2004 totaled $1,134.4 million on shipments of 1,514,300 tons, compared to sales of $985.3 million on shipments of 1,365,400 tons in the year-ago quarter. Sharply increased steel demand resulted in higher shipment volumes as well as higher realized prices, and prices also rose as a result of the surcharges the company has implemented for spot market sales to offset a portion of the unprecedented escalation in the cost of certain raw materials and energy, especially scrap, purchased slabs and natural gas. Average flat-rolled selling price was $747 per ton for the first quarter of 2004, up from $702 per ton in the first quarter of 2003 and $671 per ton in the fourth quarter of 2003.For the first quarter of 2004 the company recorded an operating profit of $1.5 million, compared to an operating loss of $43.1 million for the corresponding quarter of 2003. Improved operating levels, continuing rigorous cost controls and salaried work force reductions implemented during the preceding two quarters served to partially offset increased costs for steel scrap, purchased slabs and natural gas.The company's cash balance at March 31 was $299.9 million, and the company has an additional $436 million of availability under its two existing credit facilities. "While we have made significant progress in reducing costs over the last six months, we continue to suffer from non-competitive labor costs at most of our steel operations," comments James L. Wainscott, president and chief executive officer.Wainscott commends employees of the company's Coshocton, Ohio, stainless finishing facility, who ratified a progressive labor agreement between the company and the United Auto Workers earlier this month. "The new labor agreement at Coshocton is patterned after the most recently negotiated contracts elsewhere in the industry," he says. Second quarter shipments are expected to approximate first quarter levels, while selling prices are expected to rise due to previously announced increases in base prices and surcharges for sales in the spot market. Costs for purchased slabs are expected to be significantly higher in the second quarter compared to the first quarter of 2004. The company will undertake a planned blast furnace outage during the second quarter that is expected to negatively impact its second quarter results by approximately $16 million. Overall, modestly improved operating results are expected in the second quarter in comparison to the first quarter.AK Steel employs about 8,800 at steel operations in Ohio, Kentucky, Indiana and Pennsylvania, as well as tube operations in Ohio and Indiana. The company serves primarily automotive, appliance, construction and manufacturing markets."