Steel Dynamics Expecting a Flat Q1

Written by: Sandy Williams

Steel shipments will be flat in the first quarter compared to the fourth quarter of 2012 said Steel Dynamics in its first quarter 2013 earnings guidance. Galvanized sheet volume is projected to decrease but be offset by increases in long product shipments, including SBQ, standard railroad rail and wide flange products.

Higher shipping volumes in metal recycling will be offset by decreased margins in the first quarter. Fabrication operations are expected to be profitable for its fifth consecutive quarter said Steel Dynamics—a possible indication of improvement in nonresidential construction.

In its economic outlook Steel Dynamics added that the residential market is stronger along with the automotive and manufacturing markets. First quarter earnings are expected in the range of $0.17 to $0.21 per diluted share ($0.20 per diluted share in Q1 2012).