Steel Dynamics Updates 4th Quarter Guidance
12/11/2009 - Steel Dynamics updates its fourth quarter 2009 earnings guidance to the range of $0.10 to $0.20 per diluted share.
Steel Dynamics, Inc. has updated its fourth quarter 2009 earnings guidance to the range of $0.10 to $0.20 per diluted share.
The updated guidance compares to a net loss of ($0.45) per diluted share in the year-ago fourth quarter and net income of $0.30 per diluted share in the previous quarter (3Q09). It is also in line with qualitative guidance given in October, when the company indicated an expectation for a slight easing in sheet-related operating rates. The company also suggested other factors that did ultimately impact fourth quarter earnings, including lower shipments and sharp declines in transaction prices experienced early in the quarter, which caused margin compression at its metals recycling operations.
"Encouragingly, though, recent order entry activity has been robust at our flat rolled and SBQ bar operations, and pricing has begun to move in a positive direction," stated Keith Busse, Chairman and CEO. "Yet, sustainability remains a question mark.
"As stated previously, our operations remain capable of responding quickly to meet renewed demand for our products, and we demonstrated this ability in the second half of 2009 at our sheet product locations and our metals recycling facilities,” said Busse. "Our employees have put forth an incredible effort to continue to reduce costs and work more effectively. I applaud their innovation and achievement, and look forward to an economic environment in which we can fully capitalize on our abilities."
The company also announced that its board of directors has declared a quarterly cash dividend of $0.075 per common share to be distributed to shareholders of record at the close of business on December 31, 2009.
