Bill McColl
1 min read
In This Article:
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Steel Dynamics gave current-quarter profit guidance that fell short of analysts' estimates.
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The steelmaker sees a decline in metal recycling earnings, but anticipates a boost from steel operations.
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Steel Dynamics also gave a positive outlook for its aluminum operations.
Steel Dynamics (STLD) shares fell Wednesday on the steelmaker's weaker-than-expected outlook, although the loss was offset by a positive projection for its steel and aluminum operations.
The company reported that it sees current-quarter earnings per share (EPS) in the range of $2.00 to $2.04. Analysts surveyed by Visible Alpha were looking for $2.57. In the previous quarter, it posted EPS of $1.44.
Steel Dynamics said it sees profitability from its steel operations to be "significantly stronger than sequential first quarter results, as metal spreads expanded across the platform with average realized steel pricing increasing more than scrap raw material costs." It anticipates metal recycling profit to be basically unchanged, while steel fabrication earnings will be lower.
The company added that its Columbus, Miss., and San Luis Potosi, Mexico, aluminum locations produced their first ingots earlier this year, and it expects to begin shipping material soon.
Steel Dynamics noted that it planned to release its second-quarter results after the close of trading July 21.
Shares of Steel Dynamics slipped about 2% Wednesday morning but remain up nearly 15% year-to-date.
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