Steel Mills

Steel Dynamics Expects Lower Earnings in Q1

Written by Sandy Williams


Steel Dynamics’ earnings guidance for first-quarter 2019 was lower than analysts expected. SDI anticipates a decrease from the prior quarter as a result of lower earnings from its sheet operations. Expected earnings of $0.88 to $0.92 per diluted share will also be impacted by planned maintenance outages during the quarter.

Although sheet earnings fell in the first quarter, SDI says recent improvements in steel prices have resulted in increased order activity and growing backlogs. Overall, shipments are expected to be higher in the first quarter with demand continuing to improve throughout the year. 

Steel fabrication shipments were lower in the first quarter due to inclement weather conditions, but earnings in the segment are expected to improve due to higher selling values and lower steel input costs. Order backlog is up compared to a year ago, with customers optimistic about nonresidential construction projects for the summer, the company said.

The metals recycling platform showed improved nonferrous volume and metal spread expansion, despite slightly lower average price realization.

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