Steel Dynamics Provides Second Quarter 2014 Earnings Guidance and Announces Second Quarter Cash Dividend
06/18/2014 - Steel Dynamics, Inc. (NASDAQ/GS: STLD) today provided second quarter earnings guidance in the range of $0.28 to $0.32 per diluted share.
Estimated second quarter 2014 earnings are higher than both the company's sequential first quarter 2014 earnings of $0.17 per diluted share and second quarter 2013 earnings of $0.13 per diluted share.
Profitability from the company's steel operations for the second quarter 2014 is expected to be higher in comparison to the sequential quarter earnings. Both shipments and metal spreads are expected to improve across the steel operating platform, despite significantly increased import activity. The first quarter winter weather-induced slowdown in the domestic market has subsided. Demand from key steel-consuming end markets is expected to continue to trend favorably, more notably in automotive, manufacturing and construction.
Residential construction rebounded as more temperate climate conditions existed. In addition, increased demand for the company's structural steel and fabricated steel joist and decking products suggests the nonresidential construction market is also continuing a positive trend. Second quarter 2014 profitability from the company's fabrication operations is expected to continue to increase based on both improved volume and margins.
Metals recycling financial results are also expected to improve for the second quarter 2014 when compared to the sequential quarter, based on higher shipments more than offsetting ferrous margin deterioration that occurred due to decreased selling values.
Dividends
The company's board of directors has declared a quarterly cash dividend of $0.1150 per common share. The dividend is payable to shareholders of record at the close of business on June 30, 2014, and is payable on or about July 11, 2014.
Profitability from the company's steel operations for the second quarter 2014 is expected to be higher in comparison to the sequential quarter earnings. Both shipments and metal spreads are expected to improve across the steel operating platform, despite significantly increased import activity. The first quarter winter weather-induced slowdown in the domestic market has subsided. Demand from key steel-consuming end markets is expected to continue to trend favorably, more notably in automotive, manufacturing and construction.
Residential construction rebounded as more temperate climate conditions existed. In addition, increased demand for the company's structural steel and fabricated steel joist and decking products suggests the nonresidential construction market is also continuing a positive trend. Second quarter 2014 profitability from the company's fabrication operations is expected to continue to increase based on both improved volume and margins.
Metals recycling financial results are also expected to improve for the second quarter 2014 when compared to the sequential quarter, based on higher shipments more than offsetting ferrous margin deterioration that occurred due to decreased selling values.
Dividends
The company's board of directors has declared a quarterly cash dividend of $0.1150 per common share. The dividend is payable to shareholders of record at the close of business on June 30, 2014, and is payable on or about July 11, 2014.
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 $7.4 billion in 2013, over 6,800 employees, and manufacturing facilities primarily located throughout the United States (including five steel mills, six steel processing facilities, two iron production facilities, over 90 metals recycling locations and six steel fabrication plants).
