By Mike Boyer
Enquirer staff writer

Investors are warming to Middletown's AK Steel, which will report its first net profit in two years Tuesday.

AK's shares closed Thursday at a new 52-week high of $7.22, in the sixth daily gain since the flat-rolled carbon, stainless and electric steel maker announced that it ended a string of eight consecutive losing quarters June 30.

The company, which has lost $1 billion over the last three years, said it would report a $55 million operating profit for the second quarter.

That's before a $40 million pre-tax gain on the sale of its Houston industrial park.

AK, which reported a loss of $78.2 million, or 72 cents a share, in the second quarter last year, was expected to post a loss of 10 cents a share for the June quarter.

The company said a combination of stronger steel shipments, prices and lower costs fueled the better-than-expected performance. The company said it expects continued operating improvement.

AK's shares have risen 41 percent since closing at $5.12 on July 1. The shares traded under $2 a share as recently as October, shortly after CEO James Wainscott replaced Richard Wardrop.

Several analysts have raised their opinion of AK Steel, citing the company's improving outlook.

But Morgan Stanley analyst R. Wayne Atwell told Bloomberg News this week he remains concerned about AK.

AK Steel has obtained new labor agreements from unions at three of its seven plant, but is still seeking concessions at its other locations - including Middletown.

Steel stocks have been one of the market's stronger performers over the last month.

Newport's NS Group Inc., a maker of oil and gas drilling pipe, closed Thursday at $17.79 to set its own 52-week high.

Email mboyer@enquirer.com