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On April 22, 2009,
reported that it swung to a net loss for Q1 FY09, hurt by higher-than-expected inventory write-downs and lower revenue. Net loss attributable to Steel Dynamics stood at $87.86 million, or $0.48 per share, compared to a profit of $142.56 million, or $0.72 per share, in the prior year's quarter. The most recent consensus estimate was a loss of $0.43 per share.
Total revenue plunged 57.2% to $814.65 million from $1.90 billion a year ago, due to lower steel shipping volumes coupled with consumption of scrap valued at levels much higher than current market prices. Steel operations' revenue, which represented 59.0% of total revenue, plummeted 57.8% to $535.18 million on shipments of 743,126 tons. The average selling price declined 8.6% to $720 per ton from $782 per ton a year ago. Revenue from metals recycling and ferrous resources dropped 63.1% to $296.41 million from $803.77 million. Both ferrous and nonferrous shipments were down 48.0% and 20.0%, respectively, over Q1 FY08 levels. Mo reover, revenue from steel fabrication operations slipped 22.6% to $60.81 million from $78.52 million on shipments of 45,278 tons, while the average selling price stood at $1,343 per ton.
Steel Dynamics Inc. announced that it will close its Continental, Ohio steel joist manufacturing plant in May 2009. Recently, the company paid a quarterly cash dividend of $0.10 per common share.
Looking forward to Q2 FY09, the company expects results to improve from Q1 FY09, ranging from a small profit to a small loss. Moreover, the company expects to be profitable in the second half of FY09, inclusive of and factoring in suppressed demand throughout the year.