Steel Dynamics Inc. Provides Second Quarter 2012 Earnings Guidance
06/18/2012 - Steel Dynamics Inc. provided second quarter earnings guidance somewhat lower than first quarter earnings primarily due to decreased sheet steel pricing attributable to supply-side pressures from increased imports and increased domestic steel capacity.
Steel Dynamics, Inc. provided second quarter earnings guidance in the range of $0.15 to $0.20 per diluted share. Second quarter 2012 estimated results are somewhat lower than the $0.20 per diluted share reported for the first quarter 2012 (which included January refinancing charges of $0.03 per diluted share), and lower than the $0.43 per diluted share reported for the second quarter of 2011.
Despite relatively stable sheet steel demand, including strength in the automotive, energy, construction equipment and agricultural sectors, the company's somewhat softer earnings estimate is primarily the result of decreased sheet steel pricing attributable to supply-side pressures from increased imports and increased domestic steel capacity.
Metals recycling earnings are also expected to be lower due to late second quarter pricing and volume pressures attributable to softer export markets and weaker mill buying patterns, resulting in an oversupplied environment. Due to inventory overhang, however, the benefits from decreased scrap pricing on the company's steel operations will not be fully reflected until the third quarter.
