NEW YORK Steel Dynamics
Inc. (SDI) expects "somewhat softer" earnings for the second
quarter, the company said late Friday, attributing the
anticipated decline to weaker sheet steel pricing due to
supply-side pressures from increased imports and increased
domestic steel capacity.
The Fort Wayne, Ind.-based
steelmaker is forecasting earnings in the range of 15 to 20
cents per diluted share, somewhat lower than the 20 cents per
share it reported in the first quarter and well below the 43
cents per share logged in the second quarter of 2011.
SDI forecast lower results
despite what it described as relatively stable sheet demand,
including strength in the automotive, energy, construction
equipment and agricultural sectors.
Metals recycling earnings are also expected to be lower in
the wake of late second-quarter pricing and volume pressures
tied to softer export markets and weaker mill buying patterns,
SDI said. The company noted that it doesnt expect its
steel operations to fully reflect the benefits of lower scrap
prices until the third quarter due to inventory overhang.