FORT WAYNE, Ind., June 22, 2015 /PRNewswire/ -- Steel Dynamics,
Inc. (NASDAQ/GS: STLD) today, the company provided second quarter
2015 adjusted earnings guidance in the range of $0.20 to $0.24 per diluted share, excluding the
following items:
− Approximately $29 million,
or $0.07 per diluted share, of
expenses associated with the company's Minnesota Operations,
including severance costs and non-cash inventory valuation
adjustments related to idling these operations, and
− Approximately $9 million,
or $0.02 per diluted share, of
reduced earnings related to a furnace maintenance outage at Iron
Dynamics that generally is required once every five
years.
Estimated second quarter adjusted earnings are higher than
sequential first quarter 2015 adjusted earnings of $0.17 per diluted share and lower than prior-year
second quarter earnings of $0.31 per
diluted share. Including the above items, earnings guidance
for the second quarter 2015 is in the range of $0.11 to $0.15 per diluted share.
Profitability from the company's steel operations for the second
quarter 2015 is expected to be similar in comparison to the
sequential first quarter 2015 results. Improved second
quarter 2015 shipments will be offset by unexpected metal margin
compression, driven by steel imports remaining much higher than
originally anticipated, resulting in average quarterly steel prices
decreasing more than average quarterly scrap prices. The
benefit of reduced scrap pricing was realized in the second
quarter; but, the continued flood of steel imports thus far in 2015
continued to pressure steel product pricing to a greater
degree. However, steel pricing has recently begun to
stabilize and domestic steel demand remains solid.
Continued demand for the company's fabricated steel joist and
decking products indicates the non-residential construction market
is continuing a positive trend. Second quarter 2015 profitability
from the company's fabrication operations is expected to be higher
than near-record sequential first quarter 2015
results.
Metals recycling financial results are also expected to be
higher for the second quarter 2015, compared to the sequential
first quarter, based on both increased shipments and metal margin,
as pricing volatility subsided.
Dividends
The company's board of directors has declared a quarterly cash
dividend of $0.1375 per common share.
The dividend is payable to shareholders of record at the close of
business on June 30, 2015, and is
payable on or about July 10,
2015.
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 $8.8 billion in 2014,
approximately 7,600 employees, and manufacturing facilities
primarily located throughout the United
States (including six steel mills, eight steel coating
facilities, an iron production facility, approximately 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 uncertain economic
conditions; (2) cyclical and changing industrial demand; (3)
changes in conditions in any of the steel or scrap-consuming
sectors of the economy which affect demand for our products,
including the strength of the nonresidential and residential
construction, automotive, appliance, pipe and tube, and other
steel-consuming industries; (4) 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; (5) the impact of
domestic and foreign import price competition; (6) unanticipated
difficulties in integrating or starting up new or acquired
businesses; (7) risks and uncertainties involving product and/or
technology development; and (8) 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 website, www.sec.gov, and on the
Steel Dynamics website, www.steeldynamics.com.
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SOURCE Steel Dynamics, Inc.