Fort Wayne, Indiana-based steelmaker and metals recycler Steel Dynamics, Inc. (SDI) said Thursday that it expects Q2 2011 earnings to be lower than in Q1. SDI anticipates that Q2 earnings will be in the range of $0.35 to $0.40 per diluted share, less than Q1 2011 results of $0.46 per diluted share, but still higher than earnings of $0.22 per diluted share in Q2 2010.
SDI said that throughout Q2, the company has been experiencing "reduced metal margins in its metals recycling operations, as the cost of unprocessed scrap material more than outpaced any price increases, resulting in an estimated 15 percent quarterly reduction in ferrous margins."
SDI also said that it experienced "weaker than expected market dynamics for both its sheet and structural products." April incoming orders for flat-rolled steel were approximately 25 percent less than the monthly average in Q1.