FORT WAYNE, Ind., Sept. 17, 2018 /PRNewswire/ -- Steel
Dynamics, Inc. (NASDAQ/GS: STLD) today provided third quarter 2018
earnings guidance in the range of $1.60 to $1.64 per
diluted share, which includes estimated charges of $13 million (before taxes), or approximately
$0.04 per diluted share, related to
purchase accounting charges associated with the company's recent
Heartland acquisition. Excluding these charges, the company's
estimated adjusted third quarter 2018 earnings guidance is in the
range of $1.64 to $1.68 per diluted share.
Comparatively, sequential second quarter 2018 earnings
were $1.53 per diluted share, and third quarter 2017
earnings were $0.64 per diluted share, which included
debt refinancing and repayment charges of $0.02 per diluted share.
Third quarter 2018 profitability from the company's steel
operations is expected to continue to improve from the strong
second quarter results, based on strong underlying demand and
meaningful metal spread expansion. Average quarterly steel
product pricing is expected to increase more than average scrap
costs across the steel platform, resulting in increased
profitability for both the sheet and long product steel operations.
Based on strong steel demand fundamentals and customer
optimism, the company believes steel consumption and market
dynamics will remain strong.
Third quarter 2018 earnings from the company's metals recycling
platform are expected to decrease from sequential second quarter
results, as recycled non-ferrous shipments and pricing decline in
the quarter. Based on steady domestic steel utilization,
recycled ferrous volumes and metal spread are expected to remain
steady for the third quarter 2018.
Third quarter 2018 profitability for the company's steel
fabrication business is expected to remain steady from sequential
second quarter results. Although average sales prices and
shipments are expected to improve sequentially, higher average
steel input costs will offset these positive demand fundamentals in
the third quarter 2018. The company continues to experience
strong steel fabrication order activity, and increasing order
backlogs.
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 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; (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.