FORT WAYNE, Ind.
Sept. 12, 2011
/PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ /GS: STLD) today announced that its board of directors has declared a quarterly cash dividend of
per common share. The dividend is payable on or about
October 14, 2011
, to shareholders of record at the close of business on
September 30, 2011
The company also expects third quarter earnings to be in the range of
$0.18 to $0.22
per diluted share, higher than third quarter 2010 earnings of
per diluted share, but lower than second quarter 2011 earnings of
per diluted share, primarily due to the substantial drop in anticipated third quarter flat rolled earnings. Despite the continuation of relatively low service-center inventory levels, flat rolled demand during July and August did not materially improve, pricing remained a challenge, and the cost of raw materials, specifically steel scrap, did not decline in step with steel prices, all of which resulted in reduced third quarter margins. In contrast, earnings contributed by the company's long product steel operations for the third quarter are expected to improve based on increased volumes and expanding margins, most notably for the company's special-bar-quality steels.
Earnings from the company's metals recycling and ferrous resources and fabrication operations are expected to be consistent with those achieved in the second quarter 2011. Overall, renewed uncertainty within the U.S. and global economies continues to negatively impact corporate and consumer spending, resulting in a challenging demand environment. The company believes if more economic clarity develops throughout the remainder of the year, demand could be expected to increase, along with steel pricing and margins which have already started to move, with the potential to positively impact fourth quarter results, given the low levels of existing inventories throughout the supply chain.