Steel Dynamics, Inc. today provided first quarter 2016 earnings guidance in the range of $0.22 to $0.26 per diluted share, compared to prior year first quarter earnings of $0.13 per diluted share and sequential fourth quarter 2015 adjusted earnings of $0.09 per diluted share, which excludes non-cash goodwill and asset impairment charges. Including these charges the company reported a fourth quarter 2015 net loss of $1.04 per diluted share.
First quarter 2016 profitability from the company's steel operations is expected to be higher in comparison to the sequential fourth quarter 2015 results, based on improved shipments. The most significant increase in volume is anticipated in the company's flat roll products, as customer inventories are now better aligned with consumption and import volumes have trended lower in comparison to 2015 levels. First quarter 2016 overall average realized steel product pricing is expected to decrease, more than offsetting the savings derived from lower ferrous scrap costs. The heavy equipment, agricultural and energy markets stay challenged, while the automotive sector remains strong and the construction market continues to improve.
Sustained strong demand for the company's fabricated steel joist and deck products in what is typically a seasonally lower demand timeframe is an indicator that the non-residential construction market is continuing a positive growth trend. First quarter 2016 fabrication shipments are expected to slightly improve from sequential fourth quarter 2015 levels. However, average quarterly product pricing is expected to be lower, resulting in relatively consistent anticipated profitability, as compared to the sequential fourth quarter results.
Metals recycling financial results are expected to be improved for the first quarter 2016. Ferrous shipments are expected to increase, as domestic steel mill production utilization has improved and metal spread expansion is anticipated based on higher ferrous scrap selling values.