In announcing its quarterly earnings guidance, the company said earnings are expected to be hindered by US$15 million in costs arising from annual maintenance outages at its Butler, Ind., and Columbus, Ms., sheet mills, which reduced shipments by approximately 70,000 to 80,000 tons. 

The company also said seasonally lower shipments and tighter margins stemming from average steel pricing that declined more than scrap costs also will likely mitigate earnings. However, it sees markets improving in 2020. 

“Underlying domestic steel demand remains principally intact for the primary steel consuming sectors, and customers have been positive concerning the business outlook for 2020,” it said.  

The company also said earnings at its steel fabrication business are expected to modestly decline from near-record results in the third quarter results, again owing to compressed margins. But it said demand remains strong, and the unit could potentially post record shipments this quarter.  

“The company continues to experience strong steel fabrication order backlogs and customers remain optimistic concerning non-residential construction projects in 2020,” it said.