By Mike Boyer
The Cincinnati Enquirer

Shares of AK Steel closed down almost 14 percent Friday, briefly falling to their lowest point ever, after the Middletown steel maker reported a wider loss for the first quarter.

AK's shares closed at $3.35, down 54 cents, after falling as low as $3.11 in morning trading.

For the three months ended March 31, AK reported a net loss of $40.8 million, or 38 cents a share, compared with a loss of $25.6 million, or 24 cents a share, in the year-ago period.

Sales were $1 billion on shipments of 1.36 million tons. A year ago, revenues totaled $967.7 million on shipments of 1.43 million tons.

The company blamed weaker steel demand and higher costs for natural gas, pensions and health benefits.

The company also had an unplanned maintenance outage at its Middletown blast furnace.

In the current quarter ending in June, AK expects shipments of about 1.4 million tons. Auto shipments, which represent the biggest share of AK's business, are expected to decline about 2 percent from the first quarter. Shipments to the steel spot market should account for the increase, the company said.

The second quarter will include about $5 million in costs from AK's failed bid for National Steel Corp.

National and the Chicago bankruptcy court overseeing its reorganization this week accepted an $850 million bid from United States Steel Corp. for National after AK, which posted a higher bid of $925 million, was unable to reach a labor agreement with the United Steelworkers of America.

Richard M. Wardrop Jr., AK Steel's chairman and CEO, said the labor agreement proposed by the union didn't "enable the cost savings anywhere near those necessary to profitably operate National's assets."

He said AK Steel would study other merger and acquisition opportunities in the industry that develop.

"We're moving on," he said noting concerns about the company's ability to compete in the midst of industry consolidation were exaggerated.

He said AK Steel can still be competitive without acquiring National Steel.

"After all, we've led the industry (in profit per ton) for nine years without National," he said.

E-mail mboyer@enquirer.com