Steel Mills
Steel Dynamics Earnings Guidance Reflects Weather Impact
Written by Sandy Williams
March 20, 2014
Extreme cold temperatures resulted in lower earnings for Steel Dynamics in first quarter 2014. In earnings guidance released this week, Steel Dynamics said severe winter weather resulted in increased energy costs, transportation problems, reduced production and lower shipments.
Earnings guidance was in the range of $0.13 to $0.17 per common share, a drop from $0.24 per share in the previous quarter and $0.21 in first quarter 2013.
Higher product pricing in the first quarter is not expected to offset increased scrap costs from early in the quarter. Margin spreads are forecast to be lower for both shipments and metal production. Key end markets were also impacted by weather, negatively affecting Steel Dynamics production and sales.
Backlogs and order activity is beginning to pick up at the company’s fabrication operations. In the metals recycling segment, modest increases in shipments are expected to offset decreased ferrous metal margins for improved financial results in Q1.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Nippon won’t import slabs to US if U.S. Steel deal goes through
Nippon Steel has affirmed that if its $14.9-billion bid for U.S. Steel proves successful, the Japanese steelmaker will not import overseas-produced slabs to the US.
AISI: Raw steel production falls to 5-week low
Domestic raw steel mill production slipped to a five-week low last week, according to the latest figures released by the American Iron and Steel Institute (AISI). Weekly production is now at the third-lowest level recorded this year.
Nucor maintains HR price at $750/ton
Nucor’s weekly consumer spot price (CSP) for hot-rolled (HR) coil was unchanged week on week (w/w) at $750 per short ton (st) on Monday, Nov. 18.
Mexican court orders sale of officially bankrupt AHMSA
After failing to reach agreements with its creditors, Altos Hornos de México (AHMSA) has been formally declared bankrupt by a Mexican bankruptcy court.
AISI: Raw steel production edges back up
Domestic raw steel production recovered last week, after slipping the week prior, according to the latest American Iron and Steel Institute (AISI) data. Weekly production remains at some of the lowest levels recorded this year.