FORT WAYNE, Ind., June 17, 2019 /PRNewswire/ -- Steel
Dynamics, Inc. (NASDAQ/GS: STLD) today provided second quarter 2019
earnings guidance in the range of $0.86 to $0.90 per
diluted share. Comparatively, the company's sequential first
quarter 2019 earnings were $0.91 per
diluted share and prior year second quarter earnings were
$1.53 per diluted share.
Second quarter 2019 earnings from the company's steel operations
is expected to decrease in comparison to sequential first quarter
results. Although average product pricing declined across the
steel platform, the reduced earnings were primarily related to
lower profitability from the company's long product steel
operations, as shipments and metal spread declined in the
quarter. Underlying domestic steel demand remains intact
although steel buying hesitancy and inventory destocking has
resulted from a weakening scrap price environment.
Second quarter 2019 profitability for the company's metals
recycling platform is expected to decrease when compared to
sequential first quarter results, principally based on reduced
ferrous metal spread as average pricing declined through the
quarter.
Second quarter 2019 earnings from the company's steel
fabrication business are expected to improve from sequential first
quarter results, due to both higher shipments and metal spread
expansion, as demand remains strong and steel input costs
decline. The order backlog is stronger than it was at this
time last year, and customers remain optimistic concerning
non-residential construction projects entering the summer
construction season, although the unusually wet weather across
the United States has caused some
construction project delays.
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)
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 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.
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SOURCE Steel Dynamics, Inc.