Steel Mills
SDI Q2 Earnings Guidance Meets Expectations
Written by Sandy Williams
June 22, 2015
Steel Dynamics reported adjusted second quarter earnings guidance in the range of $0.20 to $0.24 per share, an improvement over $0.17 per share in first quarter. Not included in the earnings guidance is $29 million of expenses associated with the idling of the Minnesota operations and $9 million in reduced earnings due to a planned furnace maintenance outage at iron Dynamics.
Overall profitability in the second quarter is expected to be in line with first quarter 2015 results. Shipments increased in second quarter but were offset by lower metal margins driven by high levels of steel imports. The company benefited from lower scrap pricing but steel product pricing continued to be pressured by imports. Steel Dynamics noted steel pricing is beginning to stabilize and domestic steel demand remains solid.
Steel Dynamics fabricated steel joist and decking products have benefited from improvement in the non-residential construction market. Results in fabrication operations are expected to be higher than the “near-record sequentially first quarter 2015 results.”
Metals recycling earnings are also expected to be higher in Q2 2015 due to increased shipments and metal margins, with less pricing volatility.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
U.S. Steel sues Algoma over iron pellet shipments
U.S. Steel is suing Algoma over the Canadian flat-rolled producer's rejection of iron pellet shipments, arguing it has breached its contract.
August US mill shipments slip but still higher than last year
The American Iron and Steel Institute reported a decline in the monthly shipments of US mills from July to August.
TransPod, Algoma, Supreme Steel linkup anchors Canadian steel in high-speed transit build
The three Canadian companies have announced a strategic partnership to support the development of an ultra-high-speed transit line from Edmonton to Calgary.
Metallus, USW agree to tentative four-year labor deal
Metallus and the United Steelworkers (USW) have agreed to a tentative four-year labor contract.
ArcelorMittal Dofasco resumes cokemaking after emergency maintenance
The Canadian steelmaker reported on Sept. 30 that “urgent maintenance” was needed in its coke plant off-gas systems. The work required coke oven gas from the No. 2 coke plant to be flared for most of that week.