Steel Dynamics Declares Quarterly Cash Dividend, Provides Q4 Guidance
12/17/2010 - Steel Dynamics' board of directors has declared a quarterly cash dividend of $0.075 per common share, payable on or about January 14, 2011. The company also expects fourth quarter earnings per diluted share, before certain asset impairment charges related to its fabrication operations, to be in the range of $0.05 to $0.10.
Steel Dynamics, Inc.’s board of directors has declared a quarterly cash dividend of $0.075 per common share, payable on or about January 14, 2011, to shareholders of record at the close of business on December 31, 2010.
The company also expects fourth quarter earnings per diluted share, before certain asset impairment charges related to its fabrication operations, to be in the range of $0.05 to $0.10, consistent with third quarter 2010 earnings per diluted share of $0.09.
Steel Dynamics is currently evaluating the assets of two idled fabrication locations for impairment based on current plans for their future use; these plans were impacted by the company's recent purchase of additional joist locations and equipment. The company currently estimates a fourth-quarter impairment charge of $13 million to $15 million, or approximately $0.03 to $0.04 per diluted share.
The company reports that in recent weeks its sheet operation’s order entry and pricing have increased significantly, but were negatively impacted early in the quarter by reduced volumes and pricing. Steel Dynamics also experienced quarterly improvement in its long product steel operations, notably at its Structural and Rail Division, as volumes and pricing increased slightly and rail became a larger component of product mix.
The Engineered Bar Products Division continues to maintain strong volumes and margins, the company reports. As a whole, the steel operation’s financial performance appears to be consistent quarter to quarter. Comparative third quarter to fourth quarter metals recycling earnings will be slightly impacted by seasonally reduced volumes and reduced nonferrous margins.
