FORT WAYNE, Ind.
Sept. 17, 2013
/PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) today provided third quarter earnings guidance in the range of
$0.21 to $0.26
per diluted share. Third quarter 2013 estimated results are higher than both the
per diluted share reported for the second quarter 2013 and the
per diluted share reported for the third quarter 2012, which included two unique charges without which earnings would have been
per diluted share.
Third quarter 2013 profitability from the company's steel operations is expected to increase in comparison to the sequential second quarter of 2013, as overall shipments and average metal spread are anticipated to rise. Increased profitability from the company's sheet operations is related to both higher volume and metal spread. Increased profitability from the long products operations is expected to benefit from higher volume, more than offsetting metal spread declines caused by decreased product pricing.
The automotive and manufacturing markets remain strong. The residential construction market continues to show signs of improvement as evidenced by activity in new construction and existing home sales, which has positivity impacted demand for the company's painted and Galvalume® sheet products. A cautiously optimistic yet favorable outlook for the nonresidential construction market is supported by gradual improvement in construction-related steel products order activity, including structural steel and fabricated joist and decking products. As further evidence of gradual improvement in nonresidential construction activity, the company's fabrication operations are expected to have higher earnings in the third quarter.
Metals recycling financial results are expected to be lower for the third quarter 2013 when compared to the sequential quarter, as anticipated increases in ferrous and nonferrous shipments are expected to be more than offset by decreased ferrous margin.