Steel Dynamics, Inc
) provided its first quarter 2013 earnings guidance in the range
of 17 cents to 21 cents per share. The company reported earnings
of 20 cents per share in the first quarter of 2012.
Steel Dynamics expects overall steel shipments for the first
quarter 2013 to be considerably flat sequentially due to an
expected fall in galvanized sheet volumes, partially offset by
increased long product shipments, including engineered
special-bar-quality products, standard railroad rail and wide
Steel Dynamics expects its metals recycling operation's financial
results to deteriorate slightly in the first quarter 2013 on a
sequential basis, as a projected increase in shipping volumes
will be more than offset by decreased margins.
Steel fabrication operations segment of Steel Dynamics is
anticipated to be profitable for the fifth consecutive quarter,
due to the slow improvement in the non-residential construction
Steel Dynamics believes that its performance will be positively
impacted by strong residential construction market, automotive
and manufacturing markets and improvements in the non-residential
construction demand. However, there is an apprehension that Steel
Dynamics may be negatively impacted by the global economic
uncertainty, which affects customer confidence and buying
Steel Dynamics released its fourth-quarter 2012 results on Jan
28. The company reported adjusted earnings (excluding positive
tax adjustments) of 20 cents per share in the fourth quarter
compared with 14 cents in the same period last year. Earnings
surpassed the Zacks Consensus Estimate of 15 cents. Profit for
the quarter doubled to $60.5 million from $30.2 million in the
Revenues decreased 8.3% year over year to $1,705 million in
the fourth quarter, but surpassed the Zacks Consensus Estimate of
Steel Dynamics expects continued demand in the automotive,
manufacturing, energy and residential construction sectors and
sees signs of improvement in the nonresidential construction
sector. Steel Dynamics believes their current capital projects
will deliver products that surpass customer's expectations. Steel
Dynamics prospects are to execute its strategic growth plans.
Steel Dynamics currently carries a short-term Zacks Rank #3
(Hold). Other companies in the steel producing industry with
favorable Zacks Rank are
Rockwood Holdings, Inc.
Shiloh Industries Inc.
Companhia Siderurgica Nacional
). While both Rockwood and Shiloh retain a Zacks Rank #1 (Strong
Buy), Companhia Siderurgica holds a Zacks Rank #2 (Buy).
ROCKWOOD HLDGS (ROC): Free Stock Analysis
SHILOH INDS INC (SHLO): Get Free Report
CIA SIDERUR-ADR (SID): Free Stock Analysis
STEEL DYNAMICS (STLD): Free Stock Analysis
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