U.S. Steel today announced higher-than-expected first-quarter earnings and the second dividend increase this year, sending the steelmaker's shares higher in early trading.

Net income totaled $455 million, or $3.48 per diluted share, an eightfold increase over year-ago results. Sales rose 29 percent to $3.76 billion, as higher prices more than offset a 9 percent drop in shipments.

The results included an after-tax gain of $58 million, or 45 cents per diluted share, from one-time items, notably settling a property tax dispute involving the company's Gary (Ind.) Works. They extend a streak of profitability that began last year, when the steelmaker reported record profits of $1.1 billion.

"We anticipate another very profitable year, with significant contributions from all of our business segments," said President and Chief Executive Officer John P. Surma.

U.S. Steel increased its quarterly dividend 2 cents to 10 cents per share, payable June 10 to shareholders of record May 18. The dividend has been 8 cents per share since January, when it was increased from 5 cents.

The company also announced a number of promotions, including the elevation of John H. Goodish to chief operating officer. Goodish, former manager of the Mon Valley and Gary Works, had been executive vice president of operations.

U.S. Steel shares were trading at $46.72, up 30 cents, at 11 a.m.

More details in tomorrow's Pittsburgh Post-Gazette.