SDI Expects Q1 Earnings to Rise Sharply
03/20/2017 - Steel Dynamics Inc. is forecasting a significant improvement in its first-quarter earnings on rising shipments and expanding spreads.
The Indiana-based steelmaker said it expects to report earnings of between 77 cents and 81 cents per diluted share, up markedly from the 26 cents per share it recorded in the same quarter last year.
“First quarter 2017 average steel product pricing is expected to increase, more than offsetting the additional expense derived from higher ferrous scrap costs. The anticipated higher earnings are driven by the company's flat roll operations, as demand remains strong and customer inventory levels continue to be positioned at historically low levels,” the company said in a statement.
It also said all of the right macro and market conditions are in place for a profitable year, pointing out that the construction and automotive markets remain strong, and the energy sector has begun to strengthen.
“First quarter 2017 average steel product pricing is expected to increase, more than offsetting the additional expense derived from higher ferrous scrap costs. The anticipated higher earnings are driven by the company's flat roll operations, as demand remains strong and customer inventory levels continue to be positioned at historically low levels,” the company said in a statement.
It also said all of the right macro and market conditions are in place for a profitable year, pointing out that the construction and automotive markets remain strong, and the energy sector has begun to strengthen.
