Market Segment
SDI Expects Steady Third-Quarter Results
Written by Sandy Williams
September 20, 2017
Steel Dynamics expects third-quarter financial results to be similar to the second quarter. Higher shipments during the quarter were somewhat offset by metal spread compression.
Average quarterly pricing is expected to be consistent with the second quarter, but average scrap prices will be higher. SDI notes continued high import levels are impacting the ability of domestic steel prices to keep pace with raw material costs.
SDI expects earnings to decrease sequentially in its flat rolled operations and increase in its long products division.
The construction sector continues to be strong and energy is improving, said SDI executives. Although demand has softened from the automotive sector, SDI has continued to gain market share.
Positive growth in the nonresidential construction market is reflected by strong demand for steel joist and deck products. SDI expects earnings from its fabricated metal products business to be comparable to the second quarter due to steady demand and metal spread.
Third-quarter 2017 earnings guidance is in the range of $0.61 to $0.65 per diluted share.
Sandy Williams
Read more from Sandy WilliamsLatest in Market Segment
Nucor targets ‘white hot’ data center boom
With infrastructure demand shifting toward digital capacity, Nucor Corp. is positioning itself as the go-to steel supplier for the data center boom.
Gerdau’s N. American earnings rise in Q3 due to fall in imports
Gerdau’s North American profits rose in the third quarter, boosted by a decline in imports due to Section 232 steel tariffs.
Ternium swings to Q3 loss, eyes 2026 recovery
Ternium closed the third quarter with steady shipments and improving margins. But trade policy uncertainty and subdued demand in Mexico weighed on the Latin American steelmaker’s results.
SMU Mill Order Index fell in September
SMU’s Mill Order Index declined in September after repeated gains from June through August. The shift came as service center shipping rates and inventories fell.
Algoma’s losses widen in Q3 as tariff troubles continue
Algoma Steel’s net loss more than quadrupled in the third quarter on trade woes and its EAF transition. Separately, the company announced a change in leadership, as CEO Michael Garcia will retire at the end of the year.