FORT WAYNE, Ind., March 18, 2019 /PRNewswire/ -- Steel Dynamics,
Inc. (NASDAQ/GS: STLD) today provided first quarter 2019 earnings
guidance in the range of $0.88 to
$0.92 per diluted share.
Comparatively, the company's sequential fourth quarter 2018
earnings were $1.17 per diluted share
and prior year first quarter earnings were $0.96 per diluted share. Fourth quarter 2018
results included additional company-wide performance-based
compensation of $0.04 per diluted
share and lower earnings of $0.10 per
diluted share, associated with planned maintenance outages at the
company's liquid pig iron production facility and its two flat roll
steel mills.
First quarter 2019 earnings from the company's steel operations
is expected to decrease in comparison to sequential fourth quarter
results, primarily related to lower earnings from the company's
sheet operations. However, recent increases in sheet steel
prices are having a positive impact, resulting in increased order
activity and reconstituted order backlogs.
Overall steel shipments are expected to increase in the first
quarter 2019, compared to fourth quarter 2018 results, and average
quarterly steel product pricing is expected to decrease more than
the cost of average scrap consumed. The company believes
domestic steel consumption will continue to improve through the
year.
First quarter 2019 profitability for the company's metals
recycling platform is expected to improve when compared to
sequential fourth quarter results, based on improved nonferrous
volume and metal spread expansion, despite slightly lower average
price realization.
First quarter 2019 earnings from the company's steel fabrication
business are expected to improve from sequential fourth quarter
results, due to higher selling values and lower steel input
costs. The company's fabrication shipments are expected to be
sequentially lower in the first quarter 2019 related to inclement
weather conditions that occurred throughout the quarter. The
order backlog is stronger than it was at this time last year, and
customers remain optimistic concerning non-residential construction
projects heading into the summer season.
About Steel Dynamics, Inc.
Steel Dynamics 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, manufacturing, appliance, pipe and tube, and other
steel-consuming industries; (4) fluctuation in the cost of key
raw materials and supplies (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 or assets; (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.
View original
content:http://www.prnewswire.com/news-releases/steel-dynamics-provides-first-quarter-2019-earnings-guidance-300813877.html
SOURCE Steel Dynamics, Inc.