Steel Mills

SDI Q3 Results Weaker than Expected
Written by Sandy Williams
September 21, 2015
Steel Dynamics Inc. anticipates improved profitability in third quarter from modestly increased margins that were offset by slightly lower shipments. Earnings will be higher than second quarter which was impacted by the closing of the Minnesota Iron operations and a planned maintenance outage at Iron Dynamics.
SDI expects overall average product pricing to be flat for the third quarter. Steel scrap costs are expected to decline but will benefit the fourth quarter margin spread.
Hot rolled product shipments declined in Q3 due to continued high levels of imports combined with excessive inventories.
Heavy equipment, agriculture and energy markets remain challenged said the company. Automotive continues to show strength along with increased activity construction. Strong demand for steel joist and decking products in the company’s fabricated operations is expected to boost profits in the segment to record level despite lower average pricing.
A substantial decline is anticipated in the metals recycling segment with ferrous metals pricing declining slightly from Q2 and non-ferrous pricing down significantly.
Earnings guidance for the quarter is in the range of $0.20 to $0.24 per diluted share, up from $0.13 in second quarter and below last year’s $0.38 per share. Analysts were expecting earnings to be around $0.30 per diluted share. A quarterly dividend of $0.1375 per common share was declared by the company’s board of directors.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
SDI announces proprietary low-carbon EDGE products
Steel Dynamics has announced lower-embodied-carbon steel products BIOEDGE and EDGE, and expects “immediate interest” from several markets for some of the offerings.
Wheeling-Nippon Steel raises Galvalume coating extras
The steelmaker released updated extras to customers on Oct. 15, marking the second adjustment in just six weeks following their early September revision
Cliffs offloading some FPT assets, considering HBI plant sale as well
Lourenco Goncalves confirmed that Cleveland-Cliffs is actively selling off portions of its Ferrous Processing and Trading (FPT) assets. Its direct reduction plant in Toledo, Ohio, may also be up for grabs...
SSAB cites US strength but flags tariff-driven uncertainty
The Americas segment of Swedish steelmaker SSAB delivered a stable third quarter, but with weaker shipments and continuing cautious demand. Plate prices held, but tariffs, slowing end-user demand, and...
AHMSA drama deepens as drawn-out bankruptcy slowly progresses
A former CEO goes to court for swiping tin. An OEM distributor slams the bankruptcy trustee for failing workers and creditors. The steelmaker fires back. Angry employees demand back pay as tensions rise in Monclova's steel saga.
