|
FORT WAYNE, Ind., May 29 /PRNewswire-FirstCall/ -- Steel Dynamics, Inc.
(Nasdaq: STLD) today announced that it continues to expect to report second
quarter earnings in the range of $0.95 to $1.00 per diluted share, as
initially stated in its April 16 news release. In its April 16 guidance,
the company noted that second quarter estimates take into consideration,
and have been reduced by, an estimated $.08 per share to reflect second
quarter costs related to the redemption of $300 million of 9-1/2% Senior
Unsecured Notes due 2009 that were replaced by $500 million of 6-3/4%
Senior Notes due 2015. These additional costs will be reflected in the
company's financial statements under selling, general and administrative
expense, interest expense, and other expenses.
"Shipping volume and pricing of flat-rolled steels thus far in the
second quarter have been somewhat weaker than initially expected.
Therefore, earnings could end up at the low end of the range due to
continued softness in the flat-rolled steel marketplace," said Keith Busse,
Chairman and CEO of Steel Dynamics. "However, while weakness in the
flat-rolled steel market has been prolonged due to a slower reduction in
steel service center inventories than originally expected, we currently are
seeing a slight strengthening and stabilization in pricing. We expect this
pricing trend to continue and to improve into the third quarter." About
half of SDI's shipments are flat-rolled products and half are long
products.
"For long products," Busse continued, "market conditions for structural
steels and steel bars remain very strong and we are achieving excellent
earnings in this part of the business. We remain very positive about our
near- term prospects and continue to expect 2007 to be another record year
for Steel Dynamics."
Forward-Looking Statements
This press release contains some predictive statements about future
events, including statements related to conditions in the steel
marketplace, Steel Dynamics' revenue growth, costs of raw materials, future
profitability and earnings, and the operation of new or existing
facilities. These statements are intended to be made as "forward-looking,"
subject to many risks and uncertainties, within the safe harbor protections
of the Private Securities Litigation Reform Act of 1995. Such predictive
statements are not guarantees of future performance, and actual results
could differ materially from our current expectations.
Factors that could cause such predictive statements to turn out other
than as anticipated or predicted include, among others: changes in economic
conditions affecting steel consumption; increased foreign imports;
increased price competition; difficulties in integrating acquired
businesses; risks and uncertainties involving new products or new
technologies; changes in the availability or cost of steel scrap or
substitute materials; increases in energy costs; occurrence of
unanticipated equipment failures and plant outages; labor unrest; and the
effect of the elements on production or consumption.
In addition, we refer you to SDI's detailed explanation of these and
other factors and risks that may cause such predictive statements to turn
out differently, as set forth in our most recent Annual Report on Form 10-K
and in other reports which we from time to time file with the Securities
and Exchange Commission, available publicly on the SEC Web site,
http://www.sec.gov, and on the Steel Dynamics Web site, http://www.steeldynamics.com
Forward-looking or predictive statements we make are based on our
knowledge of our businesses and the environment in which they operate as of
the date on which the statements were made. Due to these risks and
uncertainties, as well as matters beyond our control which can affect
forward- looking statements, you are cautioned not to place undue reliance
on these predictive statements, which speak only as of the date of this
press release. We undertake no duty to update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
|
RSS