FORT WAYNE, Ind. (AP) â¿¿ Steel Dynamics Inc. on Friday issued a second-quarter earnings forecast that was below Wall Street estimates, as lower steel prices weigh on its profits.
The steel producer and metals recycler said it expects to report earnings in the range of 15 cents to 20 cents per share. That's down from 43 cents per share that Steel Dynamics earned in the same quarter a year ago. The company earned 20 cents per share in this year's first quarter.
Analysts surveyed by FactSet expect Steel Dynamics to earn 25 cents per share in the second quarter, on average, on revenue of nearly $2.06 billion. Steel Dynamics did not issue second-quarter revenue guidance.
The company attributed its second-quarter earnings outlook to lower prices for sheet steel, resulting from a recent increase in supply due to increased imports and greater domestic steel capacity.Steel Dynamics, based in Fort Wayne, Ind., said it is seeing relatively stable demand for sheet steel, including strength in the automotive, energy, construction equipment and agricultural sectors. Earnings from the company's metals recycling business are also expected to be lower due to excess supply. Steel Dynamics attributed the oversupply to softer export markets and weaker buying by steel mills. Steel Dynamics on Friday also said its board declared a quarterly cash dividend of 10 cents per common share. The dividend is payable on or about July 13 to shareholders of record as of June 30. Steel Dynamics issued its second-quarter guidance after its shares rose 44 cents, or 4.2 percent, to close at $11.02. The stock lost 11 cents, to $10.91, in after-hours trading.