Steel Dynamics, Inc. today provided third quarter 2017 earnings guidance in the range of $0.61 to $0.65 per diluted share, which includes estimated charges of $8 million (before taxes), or approximately $0.02 per diluted share, related to the company's third quarter 2017 debt refinancing activities. Excluding these charges, the company's estimated adjusted third quarter 2017 earnings guidance is in the range of $0.63 to $0.67 per diluted share.
Comparatively, the company's sequential second quarter 2017 earnings were $0.63 per diluted share and prior year third quarter earnings were $0.64 per diluted share.
In a statement, the company said third quarter 2017 profitability from the company's steel operations is expected to be similar to sequential second quarter results, based on somewhat higher shipments being offset by metal spread compression. Average quarterly steel product pricing is expected to be fairly consistent; while average scrap costs are expected to be higher, as continued high levels of steel imports dampen the ability for domestic steel prices to keep pace with raw material costs.
The company's flat roll operations anticipate lower sequential earnings due to metal spread compression. The company's long product operations anticipate higher sequential earnings based on improved engineered bar, structural, and merchant steel shipments. Demand from the construction sector remains strong, and the energy sector is continuing to strengthen. Demand from the domestic automotive sector has softened, but the company's steel operations continue to gain market share.
Third quarter 2017 profitably for the company's metals recycling platform is also expected to remain steady compared to the sequential second quarter, based on comparable shipments and some metal spread expansion from higher third quarter scrap selling values.
Continued strong demand for the company's fabricated steel joist and deck products is an indicator that the non-residential construction market is continuing a positive growth trend. Third quarter 2017 earnings from the company's fabrication business are expected to be steady with sequential second quarter results, based on steady shipments and metal spread, as improved average selling values are expected to keep pace with higher steel input costs.