© Reuters. Steel Dynamics (STLD) sees ‘significantly lower’ Q3 profitability; Shares dip
Steel Dynamics (NASDAQ:) anticipates earnings per share for the third quarter in the range of $3.46 to $3.50, below the market consensus of $3.73, the company said today.
Shares fell 1.2% on the update.
“Third quarter 2023 profitability from the company’s steel operations is expected to be significantly lower than sequential second quarter results, based on metal spread contraction as lower realized flat rolled steel pricing more than offset lower scrap costs,” STLD said today.
Steel shipments are expected to remain steady compared to the second quarter, excluding any lost volume resulting from an unplanned outage in July. Despite these challenges, steel order activity remains robust.
On the other hand, earnings from metals recycling and steel fabrication operations are expected to be lower in the third quarter compared to the second quarter. This decrease is attributed to factors such as lower shipments and metal spread compression caused by declining selling values and rising steel input costs during the quarter.
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