Steel Dynamics Sees Some Market Improvement, And Profitability
03/16/2016 - U.S.-based Steel Dynamics Inc. said some market aspects have improved and expects to report first-quarter earnings of between 22 and 26 cents per diluted share, exceeding analysts’ estimates.
Analysts were projecting 19 cents per share.
On Tuesday, the steelmaker said shipments have risen from the last quarter of 2015, especially shipments of flat rolled products.
“Customer inventories are now better aligned with consumption, and import volumes have trended lower in comparison to 2015 levels,” the company said in a statement.
However, it said its overall average realized steel product pricing is expected to decrease in the quarter, which more than offsets the savings from lower scrap costs.
As for other end markets, the heavy equipment, agricultural and energy sectors remain challenged, the company said, while the automotive sector remains strong and the construction market continues to improve.
“Sustained strong demand for the company's fabricated steel joist and deck products in what is typically a seasonally lower demand timeframe is an indicator that the non-residential construction market is continuing a positive growth trend,” the company said.
On Tuesday, the steelmaker said shipments have risen from the last quarter of 2015, especially shipments of flat rolled products.
“Customer inventories are now better aligned with consumption, and import volumes have trended lower in comparison to 2015 levels,” the company said in a statement.
However, it said its overall average realized steel product pricing is expected to decrease in the quarter, which more than offsets the savings from lower scrap costs.
As for other end markets, the heavy equipment, agricultural and energy sectors remain challenged, the company said, while the automotive sector remains strong and the construction market continues to improve.
“Sustained strong demand for the company's fabricated steel joist and deck products in what is typically a seasonally lower demand timeframe is an indicator that the non-residential construction market is continuing a positive growth trend,” the company said.
