Steel Dynamics Raises First Quarter Earnings Guidance
03/12/2008 - Steel Dynamics raises its first-quarter earnings guidance, primarily driven by higher-than-anticipated flat-rolled steel pricing and improved scrap processing results.
Steel Dynamics, Inc. raised its first quarter earnings guidance from a range of $1.10 to $1.20 per diluted share to a range of $1.25 to $1.30.
The company said the increase in earnings guidance is primarily driven by higher-than-anticipated flat-rolled steel pricing and improved scrap processing results.
"Although the cost of ferrous resources used in our steelmaking facilities has increased during the quarter, our margins have expanded as pricing for flat-rolled products has outpaced the increase in raw material costs," stated Keith E. Busse, Chairman and CEO of Steel Dynamics. "We are experiencing an extremely strong market for flat-rolled products as supply-driven demand continues to propel strong order entry. In addition, our ferrous resource operations are experiencing increased profitability as the price and demand for these materials escalates.
"In spite of the downturn in the broader U.S. economy, our outlook for Steel Dynamics during 2008 continues to remain one of optimism and growth as we remain focused on quality, product diversity, and cost containment," said Busse. "Based on our current outlook, we believe that our 2008 annual earnings could now be in the range of $5.25 to $5.75 per diluted share, an increase of $.25 on both the lower and upper ends of the range last communicated on December 11, 2007."
