Steel Dynamics Inc. (STLD: Quote) said it expects second quarter earnings to be in the range of $0.15 to $0.20 per share. Analysts polled by Thomson Reuters expect the company to report earnings of $0.24 per share for the second-quarter. Analysts' estimates typically exclude special items.
Second quarter 2012 estimated results are somewhat lower than the $0.20 per diluted share reported for the first quarter 2012, and lower than the $0.43 per share reported for the second quarter of 2011.
The company said its somewhat softer earnings estimate is primarily the result of decreased sheet steel pricing attributable to supply-side pressures from increased imports and increased domestic steel capacity.
The company said metals recycling earnings are also expected to be lower due to late second quarter pricing and volume pressures attributable to softer export markets and weaker mill buying patterns, resulting in an oversupplied environment.
Due to inventory overhang, however, the benefits from decreased scrap pricing on the company's steel operations will not be fully reflected until the third quarter, Steel Dynamics said.
The company noted that its board of directors has declared a quarterly cash dividend of $0.10 per common share. The dividend is payable to shareholders of record at the close of business on June 30, 2012, and is payable on or about July 13, 2012.
by RTT Staff Writer
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