Steel Dynamics Declared Q4 2020 Earnings Guidance

It must be noted that the company’s sequential Q3 2020 earnings were $0.47 per diluted share.

SEATTLE (Scrap Monster): Fort Wayne, Indiana-based Steel Dynamics, Inc. (SDI) announced Q4 2020 earnings guidance.

The fourth quarter earnings are likely to range between $0.72 and $0.76 per diluted share. The company foresees additional financing costs of $10 million, related to refinancing activities. Also, it anticipates cost of nearly $15 million in connection with the construction works of Sinton Texas Flat Roll Steel Mill. Excluding the impacts of the above, the Q4 adjusted earnings are likely to be in the range of $0.80 to $0.84 per diluted share.

It must be noted that the company’s sequential Q3 2020 earnings were $0.47 per diluted share. The adjusted earnings were $0.51 per diluted share, excluding the impacts of Texas steel mill construction costs.

SDI expects meaningfully higher earnings from its steel operations during the fourth quarter, mainly driven by expansion in flat roll metal spread and steady steel shipments. The earnings from the company's metals recycling operations are also expected to be higher than sequential third quarter, due to significantly higher metal margins. On the contrary, the Q4 2020 earnings from the company's steel fabrication operations are expected to be lower, especially on account of lower seasonal shipments and metal spread compression.

According to the company, domestic steel demand continues to remain strong, led by robust demand from automotive and construction sectors.

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