Steel Dynamics forecasts second-quarter profit below expectations
June 17 (Reuters) -Steel Dynamics STLD.O on Monday projected second-quarter profit below analysts' expectations as lower realized prices more than offset steady shipments in its steel business.
The Fort Wayne Indiana-based company expects its adjusted per-share earnings in the range of $2.64 to $2.68, compared with estimate of $2.98, as per LSEG data. It reported an adjusted per-share earnings of $4.81 a year earlier.
The steelmaker's shares fell 1.8% before the bell.
Steel Dynamics highlighted sustained demand from the automotive, non-residential construction, energy, and industrial sectors though weaker scrap prices have fueled buying hesitancy.
Peer Nucor NUE.N last week forecast a fall in its second-quarter earnings amid pricing headwinds.
Buyers are reluctant to build excess inventory heading into the third quarter, Boston Consulting Group's North American metals & mining analyst Karthik Valluru said on Friday.
"This pattern typically results in end market outages and destocking across the steel supply chain, especially in import tons," Valluru said.
Steel Dynamics forecast a fall in quarterly profitability in its steel operations segment, its biggest. It expects increased shipments to offset incrementally lower realized pricing in its fabrication business.
The company projected a sequential rise in its metals recycling segment, citing stronger volumes in both ferrous and nonferrous materials.
Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Sriraj Kalluvila
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
