News for 'STLD' - (Steel Dynamics Announces Third Quarter Cash Dividend and Provides Third Quarter Earnings Guidance)
FORT WAYNE, Ind., Sept 14, 2010 /PRNewswire via COMTEX/ -- Today Steel
Dynamics, Inc. (Nasdaq: STLD) announced that its board of directors has declared
a quarterly cash dividend of $0.075 per common share, payable on or about
October 14, 2010, to shareholders of record at the close of business on
September 30, 2010.
The company also indicated that it expects third quarter earnings per diluted
share to be in the range of $0.05 to $0.10, as compared to second quarter 2010
earnings of $0.22 per diluted share and third quarter 2009 earnings of $0.30 per
diluted share. Comparative second quarter to third quarter earnings will be
negatively impacted by reduced margins within the steel segment, most
significantly within the sheet and structural steel operations, driven by lower
per ton selling values. Metals recycling operations will also be negatively
impacted by quarter over quarter reduced ferrous metal spreads and reduced
volumes.
"By comparison to the weakness experienced earlier in the quarter, we are
currently seeing some improvement in order entry for our sheet products," said
Keith E. Busse, Chairman and CEO. "The remainder of the year could be positively
impacted if this order entry pattern is maintained. In addition, earnings from
metals recycling operations should also improve if current market conditions are
sustained. Start-up activities at our Mesabi Nugget operations also continue to
improve."
Mesabi Nugget comparative second quarter to third quarter production is expected
to increase approximately 65% to 70%, while average quarterly nugget sales
prices are expected to decline about 10%, in concert with world pig iron prices.
The cost of production has improved, but remained higher than expected earlier
in the quarter due to additional process refinements. The company expects third
quarter earnings to be reduced by Mesabi Nugget in a similar amount as
experienced in the second quarter, or approximately $.04 per diluted share.
Additionally, the company expects to have a higher than anticipated effective
tax rate for the third quarter, principally related to certain state income tax
rate adjustments which require a catch-up in the third quarter to reflect the
increase in rate for the first six months of the year, potentially decreasing
third quarter earnings per diluted share by as much as $.02. The company also
recorded an unexpected charge related to its railroad tie operations which is
expected to reduce earnings per diluted share by approximately $.01.
Forward-Looking Statements
This press release contains some predictive statements about future events,
including statements related to conditions in the steel and metallic scrap
markets, Steel Dynamics' revenue, costs of purchased materials, future
profitability and earnings, and the operation of new or existing facilities.
These statements are intended to be made as "forward-looking," subject to many
risks and uncertainties, within the safe harbor protections of the Private
Securities Litigation Reform Act of 1995. Such predictive statements are not
guarantees of future performance, and actual results could differ materially
from our current expectations.
Factors that could cause such predictive statements to turn out other than as
anticipated or predicted include, among others: the effects of prolonged or
deepening recession on industrial demand; general or specific sector (i.e.,
automotive, consumer appliance or construction) economic conditions affecting
steel consumption; the impact of price competition, whether domestic or the
result of foreign imports; difficulties in integrating acquired businesses;
risks and uncertainties involving new products or new technologies; changes in
the availability or cost of steel scrap or substitute materials; increases in
energy costs; occurrence of unanticipated equipment failures and plant outages;
labor unrest; and the effect of the elements on production or consumption.
More specifically, we refer you to SDI's detailed explanation of these and other
factors and risks that may cause such predictive statements to turn out
differently, as set forth in our most recent Annual Report on Form 10-K/A, in
our quarterly reports on Form 10-Q or in other reports which we from time to
time file with the Securities and Exchange Commission, available publicly on the
SEC Web site, www.sec.gov, and on the Steel Dynamics Web site,
www.steeldynamics.com
Forward-looking or predictive statements we make are based upon information and
assumptions, concerning our businesses and the environments in which they
operate, which we consider reasonable as of the date on which these statements
are made. Due to the foregoing risks and uncertainties however, as well as,
matters beyond our control which can affect forward-looking statements, you are
cautioned not to place undue reliance on these predictive statements, which
speak only as of the date of this press release. We undertake no duty to update
or revise any forward-looking statement, whether as a result of new information,
future events or otherwise.
SOURCE Steel Dynamics, Inc.
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