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Steel Dynamics Forecasts Rising Q3 Profits
09/20/2016 - U.S.-based Steel Dynamics Inc. said it expects to double its third-quarter per-share profit due to a widening gap between average steel prices and scrap costs.
The company is forecasting earnings of between 63 and 67 cents per diluted share, up from 25 cents per diluted share in the same quarter last year. The company said average realized steel prices outstripped higher scrap costs during the quarter.
However, it said the gains were offset by lower steel shipments.
“The anticipated earnings improvement is driven by the company's flat roll operations. Demand from the heavy equipment, agricultural and energy sectors stay challenged, while the automotive sector remains strong and the construction market continues gradual improvement,” the company said in a statement.
However, it said the gains were offset by lower steel shipments.
“The anticipated earnings improvement is driven by the company's flat roll operations. Demand from the heavy equipment, agricultural and energy sectors stay challenged, while the automotive sector remains strong and the construction market continues gradual improvement,” the company said in a statement.
