Steel Dynamics Provides First Quarter Earnings Guidance
03/19/2012 - Steel Dynamics provided first quarter 2012 guidance, indicating that earnings are expected to be in the range of $0.15 to $0.20 per diluted share. Estimated earnings reflect expenses, net of interest cost savings, associated with the company's financing activities which occurred in January.
Steel Dynamics, Inc. provided first quarter 2012 guidance, indicating that earnings are expected to be in the range of $0.15 to $0.20 per diluted share. Estimated earnings reflect a reduction of approximately $.03 per diluted share, representing expenses, net of interest cost savings, associated with the company's announced financing activities which occurred in January.
First quarter 2012 estimated results are improved from diluted earnings per share of $0.14 for the previous quarter (fourth quarter 2011), but lower than diluted earnings per share of $0.46 for the year-ago first quarter.
The company noted that while sequential quarterly financial improvements (Q1 2012 to Q4 2011) are expected in both the company's steel and metals recycling operations, these improvements are somewhat tempered by unexpected margin compression that began to occur mid-quarter, as flat roll markets moderated more quickly than raw material input pricing. Additional mitigating factors include increased import interest, the introduction of additional domestic capacity, and reduced order activity. Reduced steel customer buying activity seems to have been linked to an anticipation of lower scrap pricing, despite the continued strength in demand associated with energy, construction equipment, agricultural and automotive sectors.
The company also announced that its board of directors has declared a quarterly cash dividend of $0.10 per common share. The dividend is payable to shareholders of record at the close of business on March 31, 2012, and is payable on or about April 13, 2012.
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 $8.0 billion in 2011, 6,500 employees. The company’s manufacturing facilities, which are primarily located throughout the United States, include five steel mills, six steel processing facilities, two iron production facilities, over 70 metals recycling locations and six steel fabrication plants.
