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
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