Flat rolled producer and scrap recycler Steel Dynamics Inc. (SDI) on Wednesday announced earnings guidance for the fourth quarter of 2009 to be in the range of $0.10 to $0.20 per diluted share. In comparison, the company reported net losses of ($0.45) per diluted share in the fourth quarter of 2008 and net income of $0.30 per diluted share in the third quarter of 2009.
In October, the company gave qualitative guidance concerning fourth quarter 2009 estimated results, and indicated an expectation for a slight easing in sheet-related operating rates, which would result in somewhat lower earnings than those achieved during the third quarter. The company also suggested other factors which could, and did, impact fourth quarter earnings, including lower shipments and margin compression at its metals recycling operations, caused by the sharp declines in transaction prices experienced early in the quarter.
"Encouragingly, though, recent order entry activity has been robust at our flat rolled and SBQ bar operations, and pricing has begun to move in a positive direction," stated Keith Busse, Chairman and Chief Executive Officer. "Yet, sustainability remains a question mark.
"As stated previously, our operations remain capable of responding quickly to meet renewed demand for our products, and we demonstrated this ability in the second half of 2009 at our sheet product locations and our metals recycling facilities," said Busse. "Our employees have put forth an incredible effort to continue to reduce costs and work more effectively. I applaud their innovation and achievement, and look forward to an economic environment in which we can fully capitalize on our abilities."