Steel Dynamics (STLD) Slashes Q1 EPS Outlook

March 11, 2009 5:34 PM EDT

Steel Dynamics, Inc. (Nasdaq: STLD) lowers its Q1 EPS guidance from a gain of $0.05-$0.10 to a loss of $0.40-$0.45, versus the consensus of $0.10.

Notably, an estimated $70 million, approaching $0.25 per diluted share, of these estimated losses relate to non-cash inventory adjustments required to reflect current market conditions at our Flat Roll Division.

"The outlook for the remainder of 2009 remains clouded. We are currently not able to clearly project volumes and financial performance for the rest of the year," said Keith Busse, Chairman and CEO of Steel Dynamics. "We had earlier suggested the possibility of 2009 earnings that could be comparable or close to those of 2008, but we now recognize that the entire year of 2009 will be more challenging. We firmly believe that throughout the remainder of the year, with our even further improved cost structure and with our proven efficient operational strength, we will see stronger margins and a much improved earnings outlook. Our current liquidity position is continuing to improve and we remain poised to quickly capitalize on any demand improvements."

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