Steel Mills

SDI Expects Steady Third-Quarter Results

Written by Sandy Williams


Steel Dynamics expects third-quarter financial results to be similar to the second quarter. Higher shipments during the quarter were somewhat offset by metal spread compression.

Average quarterly pricing is expected to be consistent with the second quarter, but average scrap prices will be higher. SDI notes continued high import levels are impacting the ability of domestic steel prices to keep pace with raw material costs.

SDI expects earnings to decrease sequentially in its flat rolled operations and increase in its long products division.

The construction sector continues to be strong and energy is improving, said SDI executives. Although demand has softened from the automotive sector, SDI has continued to gain market share.

Positive growth in the nonresidential construction market is reflected by strong demand for steel joist and deck products. SDI expects earnings from its fabricated metal products business to be comparable to the second quarter due to steady demand and metal spread.

Third-quarter 2017 earnings guidance is in the range of $0.61 to $0.65 per diluted share.

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