Steel Mills

SDI Earnings Guidance Lower Than Expected
Written by Sandy Williams
December 19, 2013
Steel Dynamics issued its fourth quarter 2013 guidance on Tuesday reporting earnings in the range of $0.21 to $0.25 per diluted share, below analyst estimates ranging from $0.26 to $0.31. SDI announced a quarterly cash dividend of $0.11 per share.
Earnings are expected to be comparable to those of third quarter. Higher steel pricing is anticipated to be offset by reduced overall steel shipments and a lowered long product metal spread affected by decreased product pricing combined with higher scrap costs.
Steel Dynamics expects losses of 8.5 million for its Minnesota Operations in the fourth quarter. Plant production and performance are improving, says SDI, but further reductions in operating costs are still necessary.
SDI says activity is improving in the housing construction market with stronger demand for painted and Galvalume sheet products. The auto and manufacturing markets continue to show strength and the outlook is improving for nonresidential construction. Construction related steel demand for structural steel and fabricated joist and decking products is gradually improving. Order inquiries are picking up at the fabricated operations supporting an optimistic view for construction.
Metals recycling results are expected to show improvement over the previous quarter with seasonal decreases in ferrous shipments more than offset by improved ferrous metal margins.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills

CRU: Interest in AHMSA is growing
Representatives of at least six companies interested in acquiring AHMSA have reportedly begun to carry out physical inspections of the insolvent company’s assets.

USW urges Algoma to diversify product line as $500M lifeline meets wider Q3 losses
The United Steelworkers (USW) is pushing for transparency after Algoma Steel announced earlier this week that it has received CA$500 million in financing from the Canadian government.

Oregon Steel Mills lifts plate prices by $60/ton
Oregon Steel Mills has joined other producers in announcing a price increase of at least $60 per short ton on steel plate.

Algoma speeds up EAF transition, shifts focus to supplying mostly plate to Canadian market
Upended by the Trump regime's tornado of tariffs, Algoma Steel is pivoting on its cross-border business model, shifting its focus to supplying the Canadian market.

White House confirms use of ‘golden share’ to intervene at Granite City: Report
The White House confirmed it stepped in to block the halting of steel processing at U.S. Steel’s Granite City Works in Illinois, according to media reports.