Steel Dynamics Issues Weak Third-Quarter Profit Projection

By Maria Armental

Steel Dynamics Inc. on Friday issued financial projections for the September quarter well below the Wall Street consensus, citing persisting low steel prices.

Still, the steelmaker and metals recycler said it expects profitability from its steel operations to improve in the third quarter, from the previous quarter, even as shipments continue to fall amid a global steel glut and high imports as China's economy cools.

Steel Dynamics and other steelmakers have filed a trade complaint alleging cheap imports from China, India, and other countries are flooding the market.

Overall, the Fort Wayne, Ind., company projects third-quarter profit of 20 cents to 24 cents a share, compared with the 38 cents a share it made in the year-ago period.

Analysts surveyed by Thomson Reuters, on average, had projected 31 cents a share.

In July, when company officials released results for the June quarter, they said they expected results to improve in the second half of the year as demand for steel picked up.

Shares, down 9% this year, edged down 0.50% to $17.80 in late trading.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

September 18, 2015 19:01 ET (23:01 GMT)

Steel Dynamics (NASDAQ:STLD)
Historical Stock Chart
From Mar 2024 to Apr 2024