FORT WAYNE, Ind., Sept. 18, 2015 /PRNewswire/ -- Steel Dynamics,
Inc. (NASDAQ/GS: STLD) today, the company provided third quarter
2015 earnings guidance in the range of $0.20
to $0.24 per diluted share, higher than sequential second
quarter 2015 earnings of $0.13 per
diluted share and less than prior year third quarter earnings of
$0.38 per diluted share.
Second quarter 2015 earnings included expenses associated with
idling the company's Minnesota
iron operations of $0.07 per diluted
share and reduced earnings related to the planned furnace
maintenance outage at Iron Dynamics of $0.02 per diluted share. Prior year third
quarter earnings included acquisition costs and purchase accounting
adjustments related to the Severstal Columbus acquisition of
$0.09 per diluted share.
Profitability from the company's steel operations for the third
quarter 2015 is expected to be slightly improved in comparison to
the sequential second quarter 2015 results, based on modest overall
metal spread expansion offset by slightly lower steel
shipments. Overall average product pricing is expected to be
relatively unchanged in the quarter. The company's steel
scrap costs are expected to decline in the third quarter 2015;
however, based on the company's FIFO inventory accounting
methodology, further scrap declines that have occurred in September
will benefit the fourth quarter 2015 metal spread. Regarding
steel volume, flat roll steel shipments, specifically
commodity-grade hot roll products, are expected to decline in the
third quarter 2015, due to the continued excessive level of steel
imports, combined with increasing service center inventories.
The heavy equipment, agricultural and energy markets remain
challenged, while automotive remains strong and construction
continues to improve.
Continued strong demand for the company's fabricated steel joist
and decking products indicates the non-residential construction
market is continuing a positive trend. Third quarter 2015
profitability from the company's fabrication operations is expected
to be at record levels, as modest spread compression from decreased
average pricing is expected to be more than offset by improved
shipments.
Metals recycling financial results are expected to decline
meaningfully for the third quarter 2015, compared to the sequential
second quarter, based on both ferrous and non-ferrous metal spread
contraction. Sequential quarterly ferrous pricing was down
slightly and procurement costs rose; whereas, non-ferrous pricing
in the quarter declined significantly. Non-ferrous market
indices have fallen over ten percent in the third quarter 2015 and
spreads have contracted substantially.
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
September 30, 2015, and is payable on
or about October 9, 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 7,700 employees, and manufacturing facilities
primarily located throughout the United
States (including six steel mills, eight steel coating
facilities, an iron production facility, approximately 80 metals
recycling locations and eight 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.