Steel Dynamics (STLD) Reports In-Line Q2 EPS

Steel Dynamics (NASDAQ: STLD) reported Q2 EPS of $0.22, in-line with the analyst estimate of $0.22. Revenue for the quarter came in at $2.01 billion versus the consensus estimate of $1.98 billion.

"The second quarter 2015 market environment remained extremely challenging for our steel and metals recycling operations," said Mark D. Millett, Chief Executive Officer. "The ongoing flood of steel imports continued to pressure steel product pricing to a greater degree than the benefit realized from lower scrap costs, compressing second quarter steel margins. However, due to continued solid U.S. steel demand, our second quarter steel shipments improved, which offset most of the margin compression. Steel pricing has recently stabilized and domestic steel consumption from the automotive, manufacturing and construction sectors should support a stronger domestic steel industry in the second half of the year, predicated upon the expectation of reduced levels of imported steel and sustainable lower raw material costs.

"An important barometer for domestic steel consumption is the strength of the construction industry. Historically, the construction industry has been the largest single domestic steel consuming sector, and it is continuing to strengthen this year," continued Millett. "For the second quarter 2015, our fabrication operations achieved record profitability. Strong demand has allowed for stable product pricing, while order inquiries and bookings remain robust, confirming the positive trend in the non-residential construction market.

"Despite the import headwinds, we achieved over a 20 percent improvement in sequential second quarter 2015 adjusted operating income (excluding the idled Minnesota Operations and the Iron Dynamics outage impact), based on record fabrication performance and significantly improved metals recycling results, as scrap pricing volatility subsided in the quarter. We believe the key scrap supply factors of export activity and the strength of the U.S. dollar will continue to mute extreme scrap pricing volatility," concluded Millett.

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

You May Also Be Interested In

• Raymond James cuts Delta and JetBlue ratings ahead of Q2 earnings
• Lynx Equity on Lam Research (LRCX): 'Closing in on full valuation'
• Innovative Eyewear posts 71% sales gain, adds retail partners