Earnings Preview: Steel Dynamics (STLD) to Announce Positive Results
By:NewsyStocks   Thursday, January 19, 2022 9:53 AM



Steel Dynamics is expected to announce positive results for the fourth quarter of Financial Year 2011. The company is likely to report its earnings at $0.12 per share. The company had provided its guidance for the quarterly earnings in the range of $0.08 and $0.12 per share. Steel Dynamics is expected to reap the benefits of increase in its production volume. It is also expected to see rise in its demand, which will ease the pricing pressure.

Expectations

Steel Dynamics is expected to report lower earnings for its flat rolled earnings. It is estimated that its quarterly flat rolled earnings will be lower by e5 percent. Its earnings from Iron Dynamics will also be lower by $10 million due to planned shutdown. Steel Dynamics has scheduled this shutdown to last for three weeks for ensuring sequentially lower earnings. The company is also expected to report loss for its Mesabi plant, which has been incurring loss since e recent past.

Third Quarter Results

Steel Dynamics reported $2.04 billion in revenue for the third quarter of Financial Year 2011. The company's gross profit for the quarter stood at $199 million. Steely Dynamics reported its operating income at $108 million, whereas its net income from continuing operations stood at $43.304 million. Steel Dynamics had reported $456.694 million in cash and cash equivalent as on the expiry of the third quarter.

Punch Line

Steel Dynamics has announced that it would not be going ahead with its plan of setting up a new flat rolled iron mill. However, the company will benefit from its increased asset base. The company has also entered into new Magnetation joint venture. This joint venture is expected to start working in 2013 And is expected to reduce costs for its nugget plant located in Mesabi. The company is also likely to maintain solid liquidity position. During its conference call, the company will provide its guidance for scrap and steel prices.

 

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