By Maria Armental
Steelmaker and metal recycler Steel Dynamics Inc. (STLD)
projected profit for the fourth quarter below consensus, citing
acquisition costs and fallen raw material prices.
The Ford Wayne, Ind., company said it expects to make 38 cents
to 42 cents a share, excluding charges related to its September
acquisition of Russia's Severstal Columbus LLC and other items.
Impairment charges from its Minnesota operations have not been
calculated.
Analysts surveyed by Thomson Reuters were expecting 46 cents a
share.
The Columbus flat roll steel mill, company officials said, is
expected to boost production by about 40%, to 11 million tons, and
give Steel Dynamics a better position and product mix in
higher-growth markets in the southern U.S. and Mexico.
By segment, metals recycling was the hardest hit, with a
projected loss for the quarter, compared with an operating profit
of $13 million in the previous quarter. Shipments and margins are
expected to fall nearly 10% from the preceding quarter.
AK Steel Holding Corp. (AKS) on Wednesday said it expects to
post a profit and higher volumes in the quarter, benefiting from a
recent acquisition, rebounding demand in the automotive industry
and lower material costs. Analysts had expected a loss of 20
cents.
Meanwhile, Nucor Corp. (NUE) said Tuesday it expects to make 50
cents to 55 cents a share in the fourth quarter, compared to the
consensus of 65 a share, due to lower steel-mill volume and a loss
from its Louisiana business due to equipment failure.
Steel Dynamics shares, up slightly in recent after-hours
trading, closed on Wednesday at $20.08, up 3% for the year.
Write to Maria Armental at maria.armental@wsj.com
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