NEW YORK Steel
Dynamics Inc. (SDI) expects to post subdued earnings in the
fourth quarter due to seasonal shipment declines coupled with
decreased margins in its long products segment.
The Fort Wayne,
Ind.-based producer has issued a fourth-quarter earnings
guidance of 21 to 25 cents per diluted share compared with 25
cents in the third quarter and 27 cents in the fourth quarter
of last year.
While the company has
benefited from improved flat-rolled pricing during the current
quarter, those gains have been offset by seasonally reduced
steel shipments overall and its bottom line has been pressured
by increased scrap costs and decreased long product
SDI continued to
underscore the strength of the automotive and manufacturing
markets and noted that the outlook for the nonresidential
construction market appears more favorable.
in construction-related steel demand, including structural
steel and fabricated joist and decking products, continues to
promote an optimistic outlook," the company said. "Order
inquiry activity continues to improve at the companys
fabrication operations, which also supports an optimistic view
for an improved construction environment."
The financial results
of its metals recycling subsidiary, OmniSource Corp., are
expected to improve in the fourth quarter vs. the previous
quarter as an anticipated seasonal decrease in ferrous
shipments is expected to be more than offset by improved