FORT WAYNE, Ind., Sept. 19, 2017 /PRNewswire/ -- Steel Dynamics,
Inc. (NASDAQ/GS: STLD) today provided third quarter 2017 earnings
guidance in the range of $0.61 to
$0.65 per diluted share, which includes estimated charges of
$8 million (before taxes), or
approximately $0.02 per diluted
share, related to the company's third quarter 2017 debt refinancing
activities. Excluding these charges, the company's estimated
adjusted third quarter 2017 earnings guidance is in the range of
$0.63 to $0.67 per diluted share.
Comparatively, the company's sequential second quarter 2017
earnings were $0.63 per diluted share and prior year
third quarter earnings were $0.64 per diluted share.
Third quarter 2017 profitability from the company's steel
operations is expected to be similar to sequential second quarter
results, based on somewhat higher shipments being offset by metal
spread compression. Average quarterly steel product pricing
is expected to be fairly consistent; while average scrap costs are
expected to be higher, as continued high levels of steel imports
dampen the ability for domestic steel prices to keep pace with raw
material costs. The company's flat roll operations anticipate
lower sequential earnings due to metal spread compression.
The company's long product operations anticipate higher sequential
earnings based on improved engineered bar, structural, and merchant
steel shipments. Demand from the construction sector remains
strong, and the energy sector is continuing to strengthen.
Demand from the domestic automotive sector has softened, but the
company's steel operations continue to gain market share.
Third quarter 2017 profitably for the company's metals recycling
platform is also expected to remain steady compared to the
sequential second quarter, based on comparable shipments and some
metal spread expansion from higher third quarter scrap selling
values.
Continued strong demand for the company's fabricated steel joist
and deck products is an indicator that the non-residential
construction market is continuing a positive growth trend.
Third quarter 2017 earnings from the company's fabrication business
are expected to be steady with sequential second quarter results,
based on steady shipments and metal spread, as improved average
selling values are expected to keep pace with higher steel input
costs.
Cash Dividends
The company's board of directors has declared a quarterly cash
dividend of $0.1550 per common share. The dividend
is payable to shareholders of record at the close of business
on September 30, 2017, and is payable on or about October
12, 2017.
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 facilities located throughout
the United States, and in
Mexico. Steel Dynamics produces steel products, including hot
roll, cold roll, and coated sheet steel, structural steel beams and
shapes, rail, engineered special-bar-quality steel, cold finished
steel, merchant bar products, specialty steel sections and steel
joists and deck. In addition, the company produces liquid pig
iron and processes and sells ferrous and nonferrous
scrap.
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: Investors: SEC Filings.
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SOURCE Steel Dynamics, Inc.