Steel Mills
Steel Dynamics Earnings Guidance Reflects Weather Impact
Written by Sandy Williams
March 20, 2014
Extreme cold temperatures resulted in lower earnings for Steel Dynamics in first quarter 2014. In earnings guidance released this week, Steel Dynamics said severe winter weather resulted in increased energy costs, transportation problems, reduced production and lower shipments.
Earnings guidance was in the range of $0.13 to $0.17 per common share, a drop from $0.24 per share in the previous quarter and $0.21 in first quarter 2013.
Higher product pricing in the first quarter is not expected to offset increased scrap costs from early in the quarter. Margin spreads are forecast to be lower for both shipments and metal production. Key end markets were also impacted by weather, negatively affecting Steel Dynamics production and sales.
Backlogs and order activity is beginning to pick up at the company’s fabrication operations. In the metals recycling segment, modest increases in shipments are expected to offset decreased ferrous metal margins for improved financial results in Q1.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
BREAKING NEWS: Cliffs plans to idle three mills, cut 950 jobs on ‘insufficient demand and pricing’
Cleveland-Cliffs plans to indefinitely idle its steel mill in Riverdale, Ill., as well as mills in Conshohocken, Pa., and Steelton, Pa. The Cleveland-based steelmaker said all three facilities would be idled on or around June 30. Approximately 950 jobs will be impacted, the company said.
CRU: Usiminas may reduce capex unless government strengthens protection
“The lack of effective measures to create fair competition, amid a surge in subsidized imports, is the main threat to the sustainability of Brazil’s steel industry and its value chain,” CEO Marcelo Chara said.
USS swings to loss in first quarter on N. American flat-rolled segment woes
U.S. Steel CEO praised the company’s resilience, “despite the seasonally low results driven by annual mining logistics constraints in our North American Flat-Rolled segment and lagging spot prices.”
Nucor gives updates on new capacity coming online
Nucor said several of its capital projects will start operations within the next year and provided an update on them.
Algoma swings to loss on ‘market challenges’ and ‘tariff uncertainties’
Canada’s Algoma Steel swung to a loss in the first quarter amid "market challenges," and the company now expects first steel production from its first EAF in the second quarter.