Steel Dynamics, Inc. today provided third quarter 2019 earnings guidance in the range of $0.66 to $0.70 per diluted share. Comparatively, the company's sequential second quarter 2019 earnings were $0.87 per diluted share and prior year third quarter earnings were $1.69 per diluted share.
In a press release, the Steel Dynamics said the reduced earnings are primarily related to lower profitability from the company's sheet steel operations, as shipments and average steel pricing declined in the quarter, more than offsetting lower scrap costs. The company said underlying domestic steel demand remains principally intact for the primary steel consuming sectors, with particular strength in construction.
Third quarter 2019 profitability for the company's metals recycling platform is also expected to decrease when compared to sequential second quarter results, as a result of declining ferrous and nonferrous commodity prices coupled with steady shipments, the company said.
Third quarter 2019 earnings from the company's steel fabrication business are expected to improve from sequential second quarter results, due to higher shipments and steady metal spread, as demand remains strong, the company said, adding that it continues to experience strong steel fabrication order backlogs and customers remain optimistic concerning non-residential construction projects.