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.