Steel Dynamics, Inc. Provides Earnings Guidance for Q1 2019

SEATTLE (Scrap Monster): Fort Wayne, Indiana-based Steel Dynamics, Inc. announced guidance for first quarter 2019 earnings. The company guided the Q1 ’19 earnings to be in the range of $0.88 to $0.92 per diluted share. This compares with sequential fourth quarter 2018 earnings of $1.17 per diluted share and prior year first quarter earnings of $0.96 per diluted share.

Steel Dynamics expects the earnings from the company’s steel operations to decline during Q1 2019, mainly on account of anticipated lower earnings from sheet operations. However, the recent jump in sheet steel prices is seen as an encouraging sign. The order activity is likely to remain robust. The overall steel shipments are expected to increase, upon comparison with the sequential quarter. The domestic steel consumption is likely to witness further growth during the quarter.

The company foresees notable improvement in profitability from its metals recycling platform. This is primarily attributed to the improved nonferrous volume and metal spread expansion, despite lower average price realization.

Higher selling value and lower steel input costs may contribute to improved earnings from the company’s steel fabrication segment in first quarter of 2019. However, the chilly weather conditions may result in lower fabrication shipments, as compared with Q4 of 2018. The order backlog remains stronger than the previous year, the company press release noted.