Steel Dynamics Inc. (STLD) provided a third-quarter earnings outlook, with the top of the range in line with Wall Street expectations, as the steelmaker said it expects profitability from steel operations to increase from the second quarter.
The company said its expects third-quarter earnings between 21 cents and 26 cents a share, and that the impact of anticipated losses from the company's Minnesota operations is expected to be about four cents a share. Analysts polled by Thomson Reuters recently forecast per-share earnings of 26 cents.
Steel Dynamics said third-quarter profitability from the company's steel operations is expected to increase from the previous quarter, amid expectations for higher overall shipments and average metal spread.
The company also said that the automotive and manufacturing markets remain strong, and the residential construction market continues to show signs of improvement, which positively impacted demand for the company's painted and Galvalume sheet products.
Steel Dynamics said that its metals-recycling financial results are expected to be lower for the third quarter compared with the prior quarter, as anticipated increases in ferrous and nonferrous shipments are likely to be more than offset by decreased ferrous margin.
Steelmakers have struggled broadly with weaker prices, and Steel Dynamics in June said anticipated slower economic growth in China and a weak macroeconomic climate in Europe have weighed on near-term market sentiment. Persistent uncertainty in the U.S. also affected customer orders.
In July, Steel Dynamics reported second-quarter earnings dropped 35% as the company recorded choppy shipment trends and weaker prices for its steel operations.
Shares closed Tuesday at $17.24 and were unchanged after hours. Through the close, the stock has risen 26% since the start of the year.
