Steel Dynamics Sees Q1 Profit Above View

Steel Dynamics Inc. (STLD) said it expects earnings for the first quarter 2021 to be in the range of $1.88 to $1.92 per share.

Excluding the impact from costs associated with the construction of the company's Sinton Texas Flat Roll Steel Mill growth investment of $18 million or $0.06 per share, the company expects first quarter 2021 adjusted earnings to be in the range of $1.94 to $1.98 per share. Analysts polled by Thomson Reuters expect the company to report earnings of $1.93 per share for the first-quarter. Analysts' estimates typically exclude special items.

The company projects first quarter 2021 profitability from the company's steel operations to be significantly higher than sequential fourth quarter results, driven by flat roll metal spread expansion, as strong demand continues to support flat roll steel prices.

First quarter 2021 steel shipments are expected to increase sequentially across the company's portfolio. Domestic steel demand remains strong, with the automotive and construction sectors leading the momentum.

First quarter 2021 earnings from the company's steel fabrication operations are expected to be meaningfully lower sequentially, as higher steel input costs flow through the order backlog. Lower earnings are due to the timing of matching a six-month backlog to more current and higher priced steel inputs, and does not reflect demand dynamics.

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