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Steel Dynamics Sees Q2 Profit Above View

Steel Dynamics Inc. (STLD) said it expects second quarter earnings per share to be in the range of $0.29 to $0.33, and adjusted earnings per share of $0.40 to $0.44. Analysts polled by Thomson Reuters expect the company to report earnings of $0.26 per share for the second-quarter. Analysts' estimates typically exclude special items.

The company's sequential first quarter 2020 earnings were $0.88 per share and prior year second quarter earnings were $0.87 per share.

The company expects second quarter 2020 earnings from the company's steel operations to be significantly lower than sequential first quarter results, due to lower shipments and selling values as a result of the temporary closures of numerous steel consuming businesses in response to the COVID-19 pandemic.As dome

stic manufacturing slowed and states issued shelter-in-place mandates, scrap supply and collection declined. In addition, significantly lower domestic steel production resulted in weak scrap demand. As a result, the company's metals recycling operations are expected to record an operating loss for the second quarter 2020.

The company anticipates steel and recycled scrap volumes will improve, as states begin to reopen and steel consuming businesses resume operations.

Second quarter 2020 earnings from the company's steel fabrication operations are expected to be on pace with strong sequential first quarter results.

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