Steel Dynamics releases revised Q2 outlook
Indiana-based Steel Dynamics today revised its outlook for the second quarter 2005.
Citing softened demand, a significant drop in steel
scrap prices, and a resultant drop in contract and spot pricing for finished steel products, the company issued moderately decreased estimates for second quarter results.
The company says it now expects $1.10 to $1.15 per diluted share whereas earlier it had expected 1.35 to $1.40 per diluted share.
Although the demand for flat-rolled products remains underwhelming, it is seeing a perk in the structural and SBQ markets and believes overall demand will improve by the third quarter. It also says that the decrease in
scrap prices will actually come round to favorably impact the companys prices and consequently its profit margins.
Steel Dynamics sells a range of hot-rolled, cold-rolled, and
coated steel products, including various specialty products, such as thinner gauge hot-rolled products,
galvanized products, and painted products. It also sells structural steel
beams, pilings, and other steel components. In addition, the segment sells special bar-quality and
merchant bar-quality rounds, and round-cornered squares.