FORT WAYNE, INDIANA, September 11, 2012 / PRNewswire / Steel
Dynamics, Inc. (NASDAQ/GS: STLD) today provided third quarter earnings
guidance in the range of $0.01 to $0.05 per diluted share, largely
reflecting charges related to the company’s recent refinancing, which
were initially mentioned in the company’s August 16, 2012 press release,
and anticipated impairment charges. More specifically, these estimated
results include the following anticipated items:
-
Charges related to third quarter refinancing activities of approximately
$27 million, or $0.07 per diluted share, primarily associated with
prepayment fees. These transactions extended the company’s overall debt
maturity profile while reducing annual interest expense by an estimated
$10 million; and
-
Impairment charges of between $5 million and $9 million, or $0.01 to
$0.02 per diluted share, related to the decision to terminate two small
joint ventures.
Before charges related to the refinancing and asset impairments,
third quarter 2012 estimated results would have been in the range of
$0.09 to $0.14 per diluted share, lower than the $0.20 per diluted share
reported for the second quarter 2012, and lower than the $0.19 per
diluted share reported for prior year’s third quarter. The combination
of global economic and political uncertainty continuing to impact
customer confidence, and special-bar-quality customer inventory
destocking for realignment of inventory throughout the supply chain, is
expected to result in decreased steel shipments in the third quarter,
specifically within the company’s sheet and special-bar-quality
operations
Metals recycling financial results are expected to improve for the
third quarter as compared to the sequential quarter even with decreased
shipments, as metal spreads improved mid-quarter. Despite continued weak
demand from non-residential construction markets, the company’s
fabrication operations are expected to show improvement in bottom line
profitability for the third quarter when compared to the sequential
quarter, as continued progress is made concerning cost compression and
market position.
Dividends
The company’s board of directors has declared a quarterly cash
dividend of $0.10 per common share. The dividend is payable to
shareholders of record at the close of business on September 30, 2012,
and is payable on or about October 12, 2012.
About Steel Dynamics, Inc.
Forward-Looking Statement
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