Steel Dynamics, Inc. (STLD) Guides Q2 In-Line with the Street

Steel Dynamics, Inc. (NASDAQ: STLD) provided second quarter earnings guidance in the range of $0.28 to $0.32 per diluted share. This compares to the consensus of $0.32.

Profitability from the company's steel operations for the second quarter 2014 is expected to be higher in comparison to the sequential quarter earnings. Both shipments and metal spreads are expected to improve across the steel operating platform, despite significantly increased import activity. The first quarter winter weather-induced slowdown in the domestic market has subsided. Demand from key steel-consuming end markets is expected to continue to trend favorably, more notably in automotive, manufacturing and construction.

Residential construction rebounded as more temperate climate conditions existed. In addition, increased demand for the company's structural steel and fabricated steel joist and decking products suggests the nonresidential construction market is also continuing a positive trend. Second quarter 2014 profitability from the company's fabrication operations is expected to continue to increase based on both improved volume and margins.

Metals recycling financial results are also expected to improve for the second quarter 2014 when compared to the sequential quarter, based on higher shipments more than offsetting ferrous margin deterioration that occurred due to decreased selling values.

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