FORT WAYNE, Ind., June 13, 2016 /PRNewswire/ -- Steel
Dynamics, Inc. (NASDAQ/GS: STLD) today provided second quarter 2016
earnings guidance in the range of $0.53 to
$0.57 per diluted share, compared to sequential first
quarter 2016 earnings of $0.26 per
diluted share and prior year adjusted second quarter earnings of
$0.22 per diluted share, which
excludes certain non-cash inventory valuation adjustments and other
costs primarily related to idling the company's Minnesota
Operations. Including these charges the company reported second
quarter 2015 earnings of $0.13 per
diluted share.
Second quarter 2016 profitability from the company's steel
operations is expected to be almost double sequential first quarter
2016 results, based on both improved metal spread and
shipments. The most significant improvement is from the
company's flat roll operations. Customer flat roll inventory levels
are better aligned with steady consumption. As such, the reduction
in imported flat roll steel due to trade case actions has resulted
in supply-driven price appreciation, especially for coated flat
roll steel.
For all of the company's steel operations, average quarterly
realized steel product pricing is expected to increase
approximately ten percent, more than offsetting additional costs
derived from higher priced ferrous scrap. Demand from the heavy
equipment, agricultural and energy sectors stay challenged, while
the automotive sector remains strong and the construction market
continues to improve.
The company's fabrication platform continues to experience
steady demand from the non-residential construction sector, most
notably in the mid and eastern United
States, with order entry remaining strong. Second
quarter 2016 fabrication shipments are expected to remain
consistent sequentially. However, as predicted on the
company's first quarter 2016 investor conference call, metal spread
compression from lower realized product pricing and higher raw
material steel costs is expected to result in lower sequential
fabrication earnings for the second quarter
2016.
The metals recycling platform is expected to achieve higher
sequential second quarter 2016 earnings. Ferrous shipments
are expected to improve slightly, as domestic steel mill production
utilization has improved and metal spread expansion is anticipated
based on higher average ferrous scrap selling values during the
quarter.
Dividends
The company's board of directors has
declared a quarterly cash dividend of $0.14 per common share. The dividend is
payable to shareholders of record at the close of business on
June 30, 2016, and is payable on or
about July 14, 2016.
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 $7.6 billion in 2015, approximately 7,500
employees, and manufacturing facilities primarily located
throughout the United States
(including six electric-arc-furnace steel mills, ten steel coating
lines, an iron production facility, approximately 75 metals
recycling locations and eight steel fabrication plants).
Forward-Looking Statements
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, which we generally precede
or accompany by such typical conditional words as "anticipate,"
"intend," "believe," "estimate," "plan," "seek," "project" or
"expect," or by the words "may," "will," or "should," 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 non-residential 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 Steel Dynamics' 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 under the
headings Special Note Regarding Forward-Looking Statements
and Risk Factors, 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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/steel-dynamics-provides-second-quarter-2016-guidance-and-announces-second-quarter-2016-cash-dividend-300283458.html
SOURCE Steel Dynamics, Inc.