Fort Wayne, Indiana-based steelmaker Steel Dynamics, Inc. announced Wednesday Q3 earnings guidance in the range of $0.01-$0.05 per diluted share as a result of refinancing charges. Before charges related to the refinancing and asset impairments, Q3 2012 estimated results would have been in the range of $0.09 to $0.14 per diluted share, lower than the $0.20 per diluted share reported for Q2, and lower than the $0.19 per diluted share reported for prior year's Q3. The combination of global economic and political uncertainty continuing to impact customer confidence, and special-bar-quality customer inventory destocking for realignment of inventory throughout the supply chain, is expected to result in decreased steel shipments in the third quarter, specifically within the company's sheet and special-bar-quality operations.
Metals recycling financial results are expected to improve for Q3 as compared to the sequential quarter even with decreased shipments, as metal spreads improved mid-quarter.
Further, despite continued weak demand from non-residential construction markets, the company's fabrication operations are expected to show improvement in bottom line profitability for Q3 when compared to the sequential quarter.