(RTTNews) - Steel Dynamics Inc. (STLD) said it expects third quarter 2020 earnings to be in the range of $0.42 to $0.46 per share. Excluding certain items, the company expects third quarter 2020 adjusted earnings to be in the range of $0.46 to $0.50 per share. Analysts polled by Thomson Reuters expected the company to report earnings of $0.38 per share for the third-quarter. Analysts' estimates typically exclude special items.
Third quarter 2020 earnings from the company's steel operations are expected to be lower than sequential second quarter results, due to metal spread compression more than offsetting increased shipments driven by improved automotive and strong construction demand.
As domestic steel production improved in the third quarter from the trough experienced in the sequential second quarter, ferrous scrap demand also strengthened. Third quarter earnings from the company's metals recycling operations are expected to be meaningfully better than sequential second quarter results.
Construction continues to show its resiliency. Third quarter 2020 earnings from the company's steel fabrication operations are expected to be at, or near, record results, based on anticipated record shipments and margin expansion, as product pricing is expected to improve while steel input costs decrease.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.