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
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