FORT WAYNE, Ind., Sept. 19, 2016 /PRNewswire/ -- Steel
Dynamics, Inc. (NASDAQ/GS: STLD) today provided third quarter 2016
earnings guidance in the range of $0.63 to
$0.67 per diluted share, compared to sequential second
quarter 2016 earnings of $0.58 per
diluted share and prior year third quarter earnings of $0.25 per diluted share.
Third quarter 2016 profitability from the company's steel
operations is expected to increase in comparison to sequential
second quarter 2016 results, based on meaningful metal spread
expansion. Average quarterly realized steel product pricing
is expected to increase more than additional costs derived from
higher priced ferrous scrap utilized in the quarter. However,
lower steel shipments across the platform are expected to offset
some of the positive margin impact. The anticipated earnings
improvement is driven by the company's flat roll operations.
Demand from the heavy equipment, agricultural and energy sectors
stay challenged, while the automotive sector remains strong and the
construction market continues gradual improvement.
Profitably for the company's metals recycling platform is
expected to be lower for the third quarter 2016, compared to the
sequential second quarter. Both ferrous and non-ferrous
shipments are expected to decline, and ferrous metal spread
contraction is also expected as market prices have declined in the
second half of the third quarter 2016.
The company's fabrication platform continues to experience
steady demand from the non-residential construction sector, with
order entry remaining steady. Third quarter 2016 fabrication
shipments are expected to remain consistent with sequential product
pricing improvement. However, higher raw material flat roll
steel costs are expected to result in metal spread compression and
lower sequential fabrication earnings for the third quarter
2016.
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 September 30,
2016, and is payable on or about October 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 7,700
employees, and manufacturing facilities primarily located
throughout the United States
(including six electric-arc-furnace steel mills, ten steel coating
lines, a downstream SBQ processing facility, an iron production
facility, multiple metals recycling operations 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.
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SOURCE Steel Dynamics, Inc.