U.S. Steel Corp. reported record profits of $919 million, or $7.79 a share, for the third quarter -- more than triple its earnings for the same period in 2007.

The third-quarter earnings also were $251 million higher than profits for the second quarter 2008.

The company reported its sales soared to $7.31 billion in the third quarter with income from operations reaching $1.3 billion, compared with income from operations of $954 million in the second quarter of 2008 and $360 million in the third quarter of 2007.

The Pittsburgh-based steelmaker said its income was lowered by $79 million because of a $105 million pre-tax charge for employee signing bonuses stipulated in the new labor agreements with the United Steelworkers and a $23 million charge related to environmental remediation at a former production site.

But U.S. Steel Chairman and Chief Executive Officer John Surma warned that income and earnings for the current period would likely be lower than for the third quarter.

During a conference call with analysts Tuesday, Surma said that despite lower sales to the automotive sector, the American flat rolled segment earned five times its third quarter 2007 earnings because the weak U.S. dollar limited imports, and there was a resilient energy-related market.

There was a "very abrupt slowdown unlike any we've ever seen" in the market during the latter half of the third quarter, Surma said, warning that income and earnings for the current period would likely be lower than in the previous period.

"The volatile global economic climate is having significant negative effects on our business, and our forward view is limited because of low order backlogs and short lead times," said Surma in a statement. "We expect a decline in fourth-quarter results -- mainly due to softening demand and prices for flat-rolled products in North America and Europe..."

Surma told analysts he isn't sure how much of the current downturn resulted from either worries about the credit markets or about the economy. The company and its customers have liquidity and are trying to maintain it, he said.

Gretchen Haggerty, U.S. Steel's chief financial officer, said the outlook going forward is very limited.

The company expects a decline in U.S. and European flat rolled steel sales in the fourth quarter, and Haggerty said the company will continue to operate at reduced production levels.

The company also announced it had repurchased 1.13 million shares of common stock for approximately $130 million during the third quarter. The per-share price of U.S. Steel stock has fallen from a $196 high in late June to $30.28 a share at the close of the market on Monday.