Steel Mills
Steel Dynamics Expects Weaker Results in Q4
Written by Sandy Williams
December 17, 2019
Steel Dynamics is expecting lower earnings in the fourth quarter due to planned outages, lower shipments and refinancing costs. Earnings are expected to be in the range of $0.49 to $0.53 per diluted share compared to $0.69 per share in the third quarter and $1.17 per diluted share in Q4 2018.
Annual maintenance outages at Butler and Columbus resulted in costs of approximately $15 million and reduced flat roll steel shipments by 70,000-80,000 tons during the quarter.
“Underlying domestic steel demand remains principally intact for the primary steel consuming sectors, and customers have been positive concerning the business outlook for 2020,” said SDI in guidance remarks.
SDI expects returns from its metals recycling platform to decline as a result of lower ferrous shipments and average selling prices.
The steelmaker expects steel fabrication earnings to decrease slightly from the near-record results in the third quarter. Although demand remains strong with shipments on track for a record in the fourth quarter, margins have been squeezed by product prices declining more than steel input costs. Fabrication order backlogs are strong and customers are optimistic about nonresidential construction in 2020, the company said.
Sandy Williams
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