FORT WAYNE, Ind., March 18, 2014 /PRNewswire/ -- Steel Dynamics,
Inc. (NASDAQ/GS: STLD) today provided first quarter 2014 earnings
guidance in the range of $0.13 to
$0.17 per diluted share. Estimated earnings are
anticipated to be less than the company's sequential fourth quarter
2013 earnings of $0.24 per diluted
share and first quarter 2013 earnings of $0.21 per diluted share.
The extreme cold weather across much of the United States, especially the Midwest, has
had a significant negative impact on the company's first quarter
2014 financial results. The uncharacteristically severe and
prolonged winter weather conditions have resulted in increased
energy costs, diminished availability of transportation, reduced
production and lower shipments.
Profitability from the company's steel operations for the first
quarter 2014 is expected to be lower in comparison to earnings
achieved in the sequential fourth quarter 2013. Both
shipments and metal spreads are expected to be lower in the first
quarter 2014. Anticipated average quarterly product pricing
is not expected to outpace increased scrap costs from material
consumed early in the quarter. The weather has also negatively
impacted production and sales for several key steel-consuming end
markets, including automotive, construction and manufacturing.
However, improvement in these end markets is anticipated as these
consumers re-engage. In addition, order inquiry activity and
resulting backlogs continue to improve at the company's fabrication
operations.
Metals recycling financial results are expected to show
improvement for the first quarter 2014 when compared to the
sequential quarter, as decreased ferrous metal margins are expected
to be offset by modest increases in shipments.
Dividend
The company's board of directors has
declared a quarterly cash dividend of $0.1150 per common share, a five percent increase
over the company's 2013 quarterly rate. The dividend is
payable to shareholders of record at the close of business on
March 31, 2014, and is payable on or
about April 11, 2014.
"We are pleased that our board of directors took this action,
based on their confidence in the current and future strength of our
cash flow generation capability and financial position," stated
Chief Executive Officer, Mark D.
Millett.
About Steel Dynamics, Inc.
Steel Dynamics, Inc. is one of the largest domestic steel
producers and metals recyclers in the
United States based on estimated annual steelmaking and
metals recycling capability, with annual sales of $7.4 billion in 2013, over 6,800 employees, and
manufacturing facilities primarily located throughout the United States (including five steel mills,
six steel processing facilities, two iron production facilities,
over 90 metals recycling locations and six steel fabrication
plants).
Forward-Looking Statement
This press release contains some predictive statements about
future events, including statements related to conditions in the
steel and metallic scrap markets, Steel Dynamics' revenues, costs
of purchased materials, future profitability and earnings, and the
operation of new or existing facilities. These statements are
intended to be made as "forward-looking," subject to many risks and
uncertainties, within the safe harbor protections of the Private
Securities Litigation Reform Act of 1995. These statements speak
only as of this date and are based upon information and
assumptions, which we consider reasonable as of this date,
concerning our businesses and the environments in which they
operate. Such predictive statements are not guarantees of future
performance, and we undertake no duty to update or revise any such
statements. Some factors that could cause such forward-looking
statements to turn out differently than anticipated include: (1)
the effects of a recurrent slowing economy on industrial demand;
(2) changes in economic conditions, either generally or in any of
the steel or scrap-consuming sectors which affect demand for our
products, including the strength of the non-residential and
residential construction, automotive, appliance, and other
steel-consuming industries; (3) fluctuations in the cost of key raw
materials (including steel scrap, iron units, and energy costs) and
our ability to pass-on any cost increases; (4) the impact of
domestic and foreign import price competition; (5) risks and
uncertainties involving product and/or technology development; and
(6) occurrences of unexpected plant outages or equipment
failures.
More specifically, we refer you to SDI's more detailed
explanation of these and other factors and risks that may cause
such predictive statements to turn out differently, as set forth in
our most recent Annual Report on Form 10-K, in our quarterly
reports on Form 10-Q or in other reports which we from time to
time file with the Securities and Exchange Commission. These are
available publicly on the SEC Web site, www.sec.gov, and on the
Steel Dynamics Web site, www.steeldynamics.com.
SOURCE Steel Dynamics, Inc.