Steel Dynamics Provides First Quarter Earnings Guidance
03/11/2011 - Steel Dynamics says it is expecting to report first quarter earnings per diluted share in the range of $0.37 to $0.42, significantly higher than fourth quarter 2010 earnings per diluted share of $0.04.
Steel Dynamics says it is expecting to report first quarter earnings per diluted share in the range of $0.37 to $0.42, significantly higher than fourth quarter 2010 earnings per diluted share of $0.04 and also improved from earnings of $0.29 achieved in the first quarter 2010.
The company notes that in recent months it has experienced increased volumes and margins in all of its operations, although to a much smaller extent at its Structural and Rail Division and fabrication operations, which are more directly impacted by the commercial construction markets. According to the company, demand for sheet and special bar quality steels remains robust and the increase in steel utilization rates continues to strengthen demand for recycled ferrous materials.
The company also announced that its board of directors has declared a quarterly cash dividend of $0.10 per common share, an increase of 33% from the 2010 fourth quarter dividend. The dividend is payable on or about April 14, 2011, to shareholders of record at the close of business on March 31, 2011.
“We are pleased that our board of directors returned our quarterly cash dividend to the pre-recessionary level of $0.10 per share,” stated Keith E. Busse, Chairman and CEO.
“We are encouraged by the current levels of general demand we are seeing, including some moderate increases in activity at our Structural and Rail Division as rail continues to be an area of focus, and we remain optimistic concerning the nation's economic improvement.”
Steel Dynamics, Inc. is the nation’s fifth-largest producer of carbon steel products with 2010 revenues of $6.3 billion on steel shipments of 5.3 million tons. Based in Fort Wayne, Ind., the company employs about 6100 and operates five electric-furnace mini-mills. Over 60% of the company’s steel shipments are flat-rolled sheet steel and the remainder is long products (bars and beams) and fabricated products. SDI is among the most profitable American steel companies in terms of profit margins and operating profit per ton.
