FORT WAYNE, INDIANA, September 10, 2009— Steel Dynamics, Inc.
(NASDAQ/GS: STLD) today updated its third quarter 2009 earnings outlook.
Steel Dynamics now anticipates third-quarter earnings to be within a
range of $0.20 to $0.25 per diluted share, somewhat higher than initial
guidance of $0.10 to $0.20 provided in July. The estimate is based on
anticipated fully diluted shares of 235 million.
“Since we announced our preliminary earnings views, we have seen
continued strength in orders for flat-rolled steel and stronger volumes
in metal recycling,” said Keith Busse, Chairman and CEO. “Earlier in the
quarter, it was uncertain as to whether the strength in flat-rolled
order entry could be maintained; encouragingly, orders have remained
strong. Both the Flat Roll Division and The Techs have continued to
experience strong order entry and are achieving excellent operating
results. The Butler mill broke previous hot-band production records in
August, producing at an annualized rate of 3 million tons, benefiting
from mill modifications that were completed in early July. The order
book continues to be solid, with bookings through October for
value-added flat-rolled products.
“OmniSource is benefitting from increased demand for and increased
flows of recycled ferrous scrap as domestic steel producers become more
active buyers. As we indicated in July, we expect OmniSource to be
profitable for the year as a result of significant improvements in
processing volume and better margins due to higher facility utilization,
better cost control, and more favorable pricing.
“The outlook for the fourth quarter remains uncertain, as the economy
at this point appears to be fragile in its rather slow recovery mode.
The most difficult part of our business remains our long-products steel
divisions and our fabrication operations whose recovery awaits stronger
construction activity. We have not yet seen signs of improvement in
non-residential building or gains from government stimulus. Regarding
the outlook for flat-roll steel, we believe it will still take a few
months to determine if credit markets will continue to improve, allowing
consumers to be more inclined to make major purchases, such as
demonstrated in the “Cash for Clunkers” program. If on the other hand we
begin to see steel and finished-product inventories building, flat-roll
utilization could slow later in the year.
“Steel Dynamics continues to be in an excellent position to take
advantage of any improvement in order flow for steel and recycled
metallics. Our production and processing facilities are in top-notch
operating condition, and are ready to respond to increased demand. With
our long-products divisions modestly profitable at very low utilization
rates, any improvement in volumes can have a very positive impact.”
Busse said.
Forward Looking Statements
Contact:
Fred Warner, Investor Relations Manager
(260) 969-3564 or fax (260) 969-3590
f.warner@steeldynamics.com |