FORT WAYNE, Ind., Sept. 17, 2020 /PRNewswire/ -- Steel Dynamics,
Inc. (NASDAQ/GS: STLD) today provided third quarter 2020 earnings
guidance in the range of $0.42 to
$0.46 per diluted share. Excluding
the impact from the following, the company expects third quarter
2020 adjusted earnings to be in the range of $0.46 to $0.50 per
diluted share:
- Costs (net of capitalized interest) associated with the
construction of the company's Sinton Texas Flat Roll Steel Mill of
approximately $12 million, or $0.04 per diluted
share.
Comparatively, the company's sequential second quarter 2020
earnings were $0.36 per diluted
share. Excluding the impact of refinancing costs of $0.08 per diluted share and costs (net of
capitalized interest) related to the construction of the
Texas steel mill of $0.03 per diluted share, the company's second
quarter 2020 adjusted earnings were $0.47 per diluted share. Prior year third quarter
earnings were $0.69 per diluted
share.
Third quarter 2020 earnings from the company's steel operations
are expected to be lower than sequential second quarter results,
due to metal spread compression more than offsetting increased
shipments driven by improved automotive and strong construction
demand. Average realized quarterly flat roll steel product pricing
is expected to decrease during the quarter based in part on lagging
price-indexed contracts, offsetting the benefit of lower average
scrap costs. However, flat roll steel pricing has stabilized
and improved during the second half of the third quarter, supported
by customer demand and raw material pricing.
As domestic steel production improved in the third quarter from
the trough experienced in the sequential second quarter, ferrous
scrap demand also strengthened. Based on significantly higher
scrap shipments, third quarter earnings from the company's metals
recycling operations are expected to be meaningfully better than
sequential second quarter results.
Construction continues to show its resiliency. The customer
order backlog for the company's steel fabrication platform remains
strong, and customers are optimistic concerning non-residential
construction projects. Third quarter 2020 earnings from the
company's steel fabrication operations are expected to be at, or
near, record results, based on anticipated record shipments and
margin expansion, as product pricing is expected to improve while
steel input costs decrease.
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
company reports its financial results in accordance with U.S.
generally accepted accounting principles (GAAP). Management
believes that Adjusted Diluted Earnings Per Share, a non-GAAP
financial measure, provides additional meaningful information
regarding the company's performance and financial strength.
Non-GAAP financial measures should be viewed in addition to, and
not as an alternative for, the company's reported results prepared
in accordance with GAAP. In addition, because not all companies use
identical calculations, Adjusted Diluted Earnings Per Share
included in this release may not be comparable to similarly titled
measures of other companies.
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 a guarantee 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) the effects of
pandemics or other health issues, such as the recent novel
coronavirus outbreak (COVID-19); (3) cyclical and changing
industrial demand; (4) 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,
energy, and other steel-consuming industries; (5) 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; (6) the impact of domestic
and foreign imports, including trade policy, restrictions, or
agreements; (7) unanticipated difficulties in integrating or
starting up new, acquired or planned businesses or assets; (8)
risks and uncertainties involving product and/or technology
development; and (9) 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 Securities and Exchange
Commission website, www.sec.gov, and on the Steel Dynamics website,
www.steeldynamics.com under "Investors — SEC Filings".
View original
content:http://www.prnewswire.com/news-releases/steel-dynamics-provides-third-quarter-2020-earnings-guidance-301133634.html
SOURCE Steel Dynamics, Inc.