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
USW seeks clarity on plans for Granite City Works
The United Steelworkers union has asked U.S. Steel to elaborate on its Granite City Works plans following reports that the steelmaker is ending processing at the facility.
Nucor maintains plate prices, opens October order book
Nucor aims to keep plate prices flat for a seventh straight month with the opening of its October order book.
ArcelorMittal Mexico to import from sister mills as it works to resume DRI production
ArcelorMittal has partially restarted operations at its direct reduction plant in Lazaro Cardenas, Michoacan. An explosion on Aug. 18 rocked the massive steelworks on Mexico’s Pacific coast, impacting production of direct-reduced iron (DRI).
Fall maintenance outages are coming in hot
Labor Day has passed, the sun is starting to set a little earlier each day, and cooler weather has begun to find its way down to many of us across North America. And you know what that means for the steel industry… Fall maintenance outages!
AISI: Domestic steel production ticks up
US raw steel production ticked up in the week ending on Sept. 6 after a decrease the week before, according to the most recent data from the American Iron and Steel Institute (AISI).