US-based steel maker Steel Dynamics Inc. (STLD), Monday detailed its earnings guidance for the fourth quarter, which is indicated to be higher than a year ago, as it includes a favorable tax adjustment. Earnings, excluding special items, are also anticipated to trump current Street estimates.
Fort Wayne, Indiana-based Steel Dynamics expects fourth-quarter earnings of $0.18 per share to $0.22 per share that include a favorable tax adjustment of about $0.06 per share. The guidance compares to last year's earnings of $0.14 per share.
Excluding one-time items, the company expects fourth-quarter earnings of $0.12 to $0.16 per share. On average, 18 analysts polled by Thomson Reuters currently expect earnings of $0.11 per share for the quarter. Analysts' estimates typically exclude special items.
Steel Dynamics said that a combination of global economic and political uncertainty continues to impact customer confidence and buying patterns. The company expects steel shipments to be fairly flat in the fourth quarter, as increases in sheet volume are expected to be offset by decreased shipments at the Roanoke Bar and Engineered Bar divisions.
Steel Dynamics expect metals recycling business to improve in the fourth quarter sequentially, with improved ferrous metal margins expected to offset decrease in shipments. The company also anticipates fabrication operations to remain profitable for the quarter.
Steel Dynamics declared a quarterly dividend of $0.10 per share, payable on or about January 11, 2013 to shareholders as of record on December 31, 2012.
STLD closed Monday's trading at $13.76, up $0.18 or 1.33%, on the Nasdaq. The stock lost $0.06 or 0.47% in after-hours trade.
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