News for 'STLD' - (DJ Steel Dynamics 4Q Profit Soars Absent Write-Down Pressure)
DOW JONES NEWSWIRES
Steel Dynamics Inc.'s (STLD) fourth-quarter profit more than tripled over a year-ago result plagued by write-downs, while the company predicted better performance from its flat-rolled operations in the current quarter.
Steel Dynamics's earnings have soared in recent quarters amid broadly higher selling prices, but the company last month issued a bleak outlook, noting weak demand for flat-rolled products and negative effects from a facility shutdown would continue to pressure earnings.
The steelmaker topped its previously bleak estimate by shipping more steel at higher prices.
"If the U.S. economy continues a pattern of slow and steady growth during the year, steel demand should logically follow, given the relatively low levels of inventory across the supply chain," President and Chief Executive Officer Mark Millett said.
For the fourth quarter, the company posted profit of $30.2 million, or 14 cents a share, up from $7.8 million, or 4 cents a share, a year earlier. Among other charges, a write-down related to losses in its Minnesota operations cut the profit by 5 cents, compared with 3 cents a year ago. Steel Dynamics's downbeat guidance last month called for a per-share profit between 8 cents and 12 cents.
Revenue rose 22% to $1.86 billion, falling just short of the $1.87 billion average estimate by analysts polled by Thomson Reuters.
Gross margin ticked downward to 8.6% from 8.7%.
External steel shipments rose 12% to 1.37 million tons. The average selling price per ton increased 13% to $853.
Earnings from flat-roll operations still declined 26% on lower selling prices in the first half of the quarter, though new orders and prices starting in the middle of the period should benefit the current-quarter results, the company said.
Shares closed at $15.46 Tuesday and were lightly traded after hours. The stock had declined 14% over the past year.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; andrew.fitzgerald@dowjones.com
(END) Dow Jones Newswires
January 24, 2012 18:27 ET (23:27 GMT)
Copyright (c) 2012 Dow Jones & Company, Inc.- - 06 27 PM EST 01-24-12
