) has divulged its guidance for second-quarter 2014. The
Indiana-based steel maker envisions earnings in the band of 28
cents to 32 cents per share for the quarter.
The projected earnings are higher than Steel Dynamics'
first-quarter 2014 earnings of 17 cents per share and
second-quarter 2013 earnings of 13 cents per share. Analysts polled
by Zacks are currently expecting earnings of 31 cents per share on
an average for second-quarter 2014.
Steel Dynamics sees higher profits from its steel operations in the
second quarter on a sequential comparison basis. It expects both
shipments and metal spreads to improve across the steel operating
platform, notwithstanding significantly higher import activities.
Steel Dynamics noted that slowdown in the domestic market as
witnessed in the first quarter due to harsh winter weather has
subsided. It expects favorable demand trends from major steel
end-use markets, especially across automotive, manufacturing and
According to the company, the residential construction end-market
is rebounding, helped by more temperate climate conditions.
Moreover, the non-residential construction market is also showing
positive trends based on higher demand for Steel Dynamics'
structural steel and fabricated steel joist and decking products.
Steel Dynamics expects profitability from its fabrication
operations to increase in the second quarter on the back of higher
volumes and margins. The results from the company's metals
recycling business are also expected to improve sequentially in the
quarter as increased shipments more than offset a decline in
ferrous margins due to decreased selling values.
Steel Dynamics saw its profit slip 20% year over year in
first-quarter 2014 as severe winter weather, especially in the
Midwest, led to higher energy costs, lower production as well as
reduced transportation availability that delayed shipments.
Steel Dynamics, a Zacks Rank #3 (Hold) stock, is among the biggest
steel producers and metals recyclers in the U.S. based on estimated
annual steelmaking and metals recycling capacity.
Other companies in the steel industry with favorable Zacks Rank are
Universal Stainless & Alloy Products Inc.
Grupo Simec S.A.B. de C.V.
). While Universal Stainless holds a Zacks Rank #1 (Strong Buy),
both Grupo Simec and ThyssenKrupp retain a Zacks Rank #2 (Buy).
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