FORT WAYNE, Ind.
June 17, 2013
/PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) today provided second quarter earnings guidance in the range of
$0.10 to $0.14
per diluted share. Second quarter 2013 estimated results are lower than the
per diluted share reported for the first quarter 2013 and lower than the
per diluted share reported for the second quarter 2012.
Second quarter 2013 overall steel shipments are expected to be slightly higher in comparison to the first quarter 2013, as decreases in merchant bar volume are expected to be more than offset by increased sheet and other long product shipments, including engineered special-bar-quality products and standard railroad rail. However, margin compression caused by declines in average consecutive quarterly sheet and structural steel pricing are expected to more than offset the volume improvement, resulting in reduced profitability from the company's steel operations.
Anticipated slower economic growth in
coupled with suppressed economic growth in the European community appears to influence near-term market sentiment. Persistent uncertainty in the domestic economic environment continues to hold consumer confidence at bay and influence customer buying patterns. However, the residential construction market is stronger, and market optimism remains in place for improvement in non-residential construction demand, as modest increases in key directional indices continue to show signs of recovery from base historical lows. Automotive and manufacturing markets continue to be strong.
Metals recycling financial results are expected to be lower for the second quarter 2013 as compared to the sequential quarter, as anticipated improvement in both ferrous shipments and margins are expected to be more than offset by decreased nonferrous volumes and margins.
The company's fabrication operation is expected to remain profitable for the fifth consecutive quarter, a possible indication of support for small incremental improvement in nonresidential construction activity.