FORT WAYNE, Ind., Dec. 16, 2019 /PRNewswire/ -- Steel
Dynamics, Inc. (NASDAQ/GS: STLD) today provided fourth quarter 2019
earnings guidance in the range of $0.49 to $0.53 per
diluted share.
Excluding the impact from the following items, the company
expects fourth quarter adjusted earnings to be in the range of
$0.55 to $0.59 per diluted share:
- Additional financing costs related to the company's
December 2019 refinancing activities
of approximately $4 million, or
$0.01 per diluted share, and
- Lower earnings from two planned annual maintenance outages at
the company's Butler and Columbus flat roll divisions, resulting in
higher than normal maintenance and associated costs of
approximately $15 million, or
$0.05 per diluted share. The outages
also reduced flat roll steel shipments by an estimated 70,000 tons
to 80,000 tons, further reducing fourth quarter earnings.
Comparatively, the company's sequential third quarter 2019
earnings were $0.69 per diluted share
and prior year fourth quarter earnings were $1.17 per diluted share.
Fourth quarter 2019 profitability from the company's steel
operations is expected to be lower in comparison to sequential
third quarter results, based on the two planned outages, seasonally
lower shipments and margin compression as average steel pricing
declined more than scrap costs in the quarter. Underlying
domestic steel demand remains principally intact for the primary
steel consuming sectors, and customers have been positive
concerning the business outlook for 2020.
Fourth quarter 2019 results for the company's metals recycling
platform is expected to decrease when compared to sequential third
quarter results, as a result of lower ferrous shipments and average
selling values.
Fourth quarter 2019 earnings from the company's steel
fabrication business are expected to modestly decline from
near-record high third quarter results, based on margin compression
as average product pricing declined more than steel input
costs. Demand remains strong with the possibility of record
shipments in the fourth quarter. The company continues to
experience strong steel fabrication order backlogs and customers
remain optimistic concerning non-residential construction projects
in 2020.
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.
Note Regarding Non-GAAP Financial Measures
The estimated diluted earnings per share set forth in this
guidance is the company's estimate of its anticipated diluted
earnings per share, determined in accordance with U.S. generally
accepted accounting principles (GAAP). Management believes that the
estimate of anticipated adjusted diluted earnings per share, which
is the company's estimate of an anticipated non-GAAP financial
measure, provides additional meaningful information regarding the
company's performance. Estimates of anticipated non-GAAP financial
measures should be viewed in addition to, and not as an alternative
for, estimates of anticipated GAAP financial measures.
Forward-Looking Statements
This press release contains some predictive statements about
future events, including statements related to conditions in
domestic or global economies, conditions in steel and recycled
metals market places, Steel Dynamics' revenues, costs of purchased
materials, future profitability and earnings, and the operation of
new, existing or planned 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)
fluctuations in the cost of key raw materials and supplies
(including steel scrap, iron units, zinc, graphite electrodes, and
energy costs) and our ability to pass on any cost increases; (5)
the impact of domestic and foreign imports, including trade policy,
restrictions, or agreements; (6) unanticipated difficulties in
integrating or starting up new, acquired or planned 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.
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SOURCE Steel Dynamics, Inc.