Metals Recycling Platform to Drive Steel Dynamics’ Robust Earnings Growth

SEATTLE (Scrap Monster): Steel Dynamics, Inc.-one of the leading steel makers and metal recyclers with operations in the US and Mexico has announced guidance for its first quarter of 2018. In addition to meaningful improvement in profitability from steel operations, the company also expects improved performance from metal recycling platform.

Steel Dynamics expects the first quarter results to be in the range of $0.88 to $0.92 per diluted share. Excluding the non-operational items, the Q1 2018 results are expected to remain higher when compared with the adjusted earnings of $0.54 per diluted share during the fourth quarter 2017 and $.82 per diluted share during prior year first quarter.

The company foresees meaningful improvement in profitability from the company’s steel sector operations, mainly on account of increased shipments and higher product pricing. The pricing momentum and jump in steel consumption are likely to sustain in the near term. The recent trade actions, imposing hefty import tariffs on imported steel, could lead to reduced imports and increased domestic demand.

Steel Dynamics foresees better profitability from the company’s metal recycling platform during Q1 2018, as compared with the last quarter of 2017. This is mainly on account of higher shipments due to robust ferrous scrap demand from the domestic steel sector. The company sees decline in earnings from steel fabrication segment during the quarter. At the same time, the demand from the non-residential construction segment will continue to remain solid in Q1 2018.