Steel Dynamics Announces Second Quarter Earnings Guidance
06/17/2010 - Steel Dynamics, Inc. announced that it expects to report earnings of $0.20 to $0.25 per diluted share for the second quarter. Anticipated results reflect lower flat-rolled volumes and margins vs. the previous quarter, as well as the impact of both planned and unplanned outages.
Steel Dynamics, Inc. announced that it expects to report earnings of $0.20 to $0.25 per diluted share for the second quarter.
Projected results compare to earnings of $0.29 per diluted share for the previous quarter (1Q-2010) and a net loss of ($0.08) per diluted share for the year-ago second quarter (2Q-2009).
The company noted that decreased metals recycling margins due to decreasing scrap prices would impact second quarter earnings, as would lower flat-rolled volumes and margins. Planned spring maintenance outages impacted production and shipping volumes in the company's steel operations, which were further influenced by unexpected transformer repairs in June at the Roanoke Bar and Flat Roll divisions.
"Our steel operations had healthy earnings in April and May with some slowing of order entry for June at our Butler flat-rolled facility," stated Keith E. Busse, Chairman and CEO.
"We believe steel service center inventories of sheet products continue to remain low and anticipate buying activity to increase after the typical early July holiday and maintenance shutdowns by manufacturing companies,” added Busse. “Our Engineered Bar Products Division continues to experience very strong order entry and operating rates at our Roanoke Bar and Steel of West Virginia operations continue to improve.
"Unfortunately our structural steel business remains challenging with only marginal improvement. We have restarted the medium section rolling mill which allows us the flexibility to increase rail production on our large section mill, as our successes in the rail market continue to grow," Busse said.
The company also noted that its board of directors has declared a quarterly cash dividend of $0.075 per common share, payable on or about July 12, 2010 to shareholders of record at the close of business on June 30, 2010.
