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Steel Dynamics, Inc. (STLD) Misses Q2 EPS by 1c

July 21, 2014 6:06 PM EDT

Steel Dynamics, Inc. (NASDAQ: STLD) reported Q2 EPS of $0.31, $0.01 worse than the analyst estimate of $0.32. Revenue for the quarter came in at $2.07 billion versus the consensus estimate of $1.99 billion.

"Our consolidated operating income increased 63 percent to $132 million for the second quarter 2014, as compared to the first quarter," said Chief Executive Officer Mark Millett. "All of our reporting segments achieved meaningfully higher profitability compared to the sequential quarter, improving beyond the negative inclement weather impact on the first quarter. Despite elevated import levels, the strength of underlying demand coupled with our continued market diversification and customer focus allowed us to achieve record quarterly steel shipments. We are optimistic heading into the second half of 2014 and so are our customers."

Outlook

"We continue to remain optimistic," Millett said. "The improvement in our financial and operational performance is indicative of more than a mere weather recovery from the first quarter. The demand for our products continues to improve. The recent growth projects which began ramping-up in 2014 are also beginning to contribute to our earnings. The automotive and manufacturing markets remain strong, and we believe the increase in domestic energy investments is continuing to strengthen. We continue to have confidence that the broader U.S. economic recovery is strengthening, and that the non-service sector portion of the domestic GDP remains capable of growing at a faster rate than the overall GDP. We believe our diversified offerings of value-added products and our exceptional team, combined with our unique operating culture provides us a unique competitive advantage as we capitalize on the opportunities ahead.

"Our organic growth projects and latent steel capacity, coupled with our planned acquisition of the Severstal Columbus steel mill, and our belief that domestic steel consumption is on the upward trend—all point toward meaningful growth opportunities for Steel Dynamics' employees, customers and shareholders," concluded Millett.

For earnings history and earnings-related data on Steel Dynamics, Inc. (STLD) click here.



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