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Steel Dynamics Sees Q2 Profit Below View

Steel Dynamics Inc. (STLD) expects earnings for the second quarter 2019 to be in the range of $0.86 to $0.90 per share, compared to $1.53 per share reported last year. Analysts polled by Thomson Reuters expect the company to report earnings of $0.99 per share for the second-quarter. Analysts' estimates typically exclude special items.

STLD closed Monday's regular trading at $26.23, down $0.20 or 0.76 percent. In the after-hours trade, the stock further dropped $0.52 or 1.98 percent.

The company expects second quarter earnings from its steel operations to decrease in comparison to sequential first quarter results, primarily related to lower profitability from the company's long product steel operations, as shipments and metal spread declined in the quarter.

Second quarter 2019 profitability for the company's metals recycling platform is expected to decrease when compared to sequential first quarter results, principally based on reduced ferrous metal spread as average pricing declined through the quarter.

Quarterly earnings from the company's steel fabrication business are expected to improve from sequential first quarter results, due to both higher shipments and metal spread expansion, as demand remains strong and steel input costs decline.

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