FORT WAYNE, Ind., Sept. 17, 2014 /PRNewswire/ -- Steel
Dynamics, Inc. (NASDAQ/GS: STLD) today provided third quarter 2014
earnings guidance in the range of $0.34 to
$0.38 per diluted share, which includes estimated charges of
$34 million (before taxes) related to
the acquisition and financing of Severstal Columbus, LLC that
occurred mid-September, and required post-acquisition estimated
purchase accounting adjustments. Excluding these charges, the
company's estimated third quarter 2014 earnings guidance would have
been in the range of $0.42 to $0.46
per diluted share. Estimated third quarter earnings are higher than
both the company's sequential second quarter 2014 earnings of
$0.31 per diluted share and prior
year third quarter earnings of $0.25
per diluted share.
Profitability from the company's steel operations for the third
quarter 2014 is expected to be higher in comparison to the
sequential quarter. Both shipments and metal spreads are
expected to improve across the steel operating platform, despite
continued elevated import activity. Demand trends for key
steel-consuming end markets is expected to remain favorable, as
strength in automotive, manufacturing, energy and construction
markets continue to improve.
Continued increased demand for the company's structural steel
and fabricated steel joist and decking products indicates the
nonresidential construction market is continuing a positive
trend. Third quarter 2014 profitability from the company's
fabrication operations is expected to continue to increase based on
both improved volume and margin.
Metals recycling financial results are expected to be somewhat
flat to slightly lower for the third quarter 2014 when compared to
the sequential quarter, based on lower nonferrous metal spreads
more than offsetting improved ferrous and nonferrous volumes.
Dividends
The company's board of directors has declared a quarterly cash
dividend of $0.1150 per common share.
The dividend is payable to shareholders of record at the close of
business on September 30, 2014, and
is payable on or about October 10,
2014.
About Steel Dynamics, Inc.
Steel Dynamics, Inc. is one of the largest domestic steel
producers and metals recyclers in the
United States based on estimated annual steelmaking and
metals recycling capability, with annual sales of $7.4 billion in 2013, over 7,400 employees, and
manufacturing facilities primarily located throughout the United States (including six steel mills,
six steel processing facilities, two iron production facilities,
over 90 metals recycling locations and six steel fabrication
plants).
Forward-Looking Statement
This press release contains some predictive statements about
future events, including statements related to conditions in the
steel and metallic scrap markets, Steel Dynamics' revenues, costs
of purchased materials, future profitability and earnings, and the
operation of new or existing facilities. These statements are
intended to be made as "forward-looking," subject to many risks and
uncertainties, within the safe harbor protections of the Private
Securities Litigation Reform Act of 1995. These statements speak
only as of this date and are based upon information and
assumptions, which we consider reasonable as of this date,
concerning our businesses and the environments in which they
operate. Such predictive statements are not guarantees of future
performance, and we undertake no duty to update or revise any such
statements. Some factors that could cause such forward-looking
statements to turn out differently than anticipated include: (1)
the effects of a recurrent slowing economy on industrial demand;
(2) changes in economic conditions, either generally or in any of
the steel or scrap-consuming sectors which affect demand for our
products, including the strength of the non-residential and
residential construction, automotive, appliance, and other
steel-consuming industries; (3) fluctuations in the cost of key raw
materials (including steel scrap, iron units, and energy costs) and
our ability to pass-on any cost increases; (4) the impact of
domestic and foreign import price competition; (5) risks and
uncertainties involving product and/or technology development; and
(6) occurrences of unexpected plant outages or equipment
failures.
More specifically, we refer you to SDI's more detailed
explanation of these and other factors and risks that may cause
such predictive statements to turn out differently, as set forth in
our most recent Annual Report on Form 10-K, in our quarterly
reports on Form 10-Q or in other reports which we from time to
time file with the Securities and Exchange Commission. These are
available publicly on the SEC Website, www.sec.gov, and on the
Steel Dynamics Website, www.steeldynamics.com.
SOURCE Steel Dynamics, Inc.