Steel Dynamics Provides First Quarter 2013 Earnings Guidance
03/19/2013 - Steel Dynamics, Inc. provided first quarter earnings guidance, noting that steel shipments are expected to be fairly flat in comparison to the fourth quarter of 2012, as decreases in galvanized sheet volume are expected to be offset by increased long product shipments.
Steel Dynamics, Inc. provided first quarter earnings guidance in the range of US$0.17 to $0.21 per diluted share. Excluding a fourth quarter favorable tax adjustment of $0.07 per diluted share, estimated earnings are comparable to the company's fourth quarter adjusted 2012 earnings of $0.20 per diluted share. The company also reported earnings of $0.20 per diluted share in the first quarter of 2012.
First quarter 2013 overall steel shipments are expected to be fairly flat in comparison to the fourth quarter 2012, as decreases in galvanized sheet volume are expected to be offset by increased long product shipments, including engineered special-bar-quality products, standard railroad rail and wide flange products. The global economic uncertainty continues to impact customer confidence and buying patterns. However, the residential construction market is stronger, and market optimism remains in place for improvement in non-residential construction demand, as modest increases in key directional indices continue to show signs of recovery from base historical lows. Automotive and manufacturing markets continue to be strong.
Metals recycling financial results are expected to decrease somewhat for the first quarter 2013, compared to the sequential quarter, as anticipated increases in shipping volumes are offset by decreased margins. In addition, the company's fabrication operations are expected to remain profitable for the fifth consecutive quarter, a possible sign of slowly improving nonresidential construction activity.
Steel Dynamics, Inc. is one of the largest domestic steel producers and metals recyclers in the United States based on estimated annual steelmaking and metals recycling capability, with annual sales of $7.3 billion in 2012, over 6,600 employees, and manufacturing facilities primarily located throughout the United States (including five steel mills, six steel processing facilities, two iron production facilities, over 70 metals recycling locations and six steel fabrication plants).
