Lower Earnings Expected Due to Fluctuating Steel Prices
- 3Q EPS forecasted at $1.94 to $1.98, lower than 2Q and YoY results
- Steel Dynamics reports 2Q earnings of $2.72 per share
- 3Q steel operations profitability lower due to lower flat-rolled pricing
- Steel fabrication ops moderately lower, metals recycling comparable to 2Q
- Flat-rolled steel prices stabilized and improved, steady demand
- Order activity in steel fabrication steady with expected volume increase in 2025
Steel Dynamics has announced that it expects its third-quarter earnings per share (EPS) to be between $1.94 and $1.98, which is lower than both the second quarter’s results of $2.72 per share and last year’s third-quarter earnings of $3.47 per share. The company attributes this decline in profitability to lower average realized pricing within its flat-rolled operations. Steel Dynamics also stated that 80% of its business is contractually based on lagging pricing indices. Earnings from steel fabrication operations are expected to be moderately lower than the second quarter, while earnings from metals recycling operations will remain comparable. The company reports that flat-rolled steel prices have stabilized and improved, with steady underlying demand for steel. Current order activity in steel fabrication is steady, but they anticipate increased volumes in 2025.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Steel Dynamics’ earnings per share and expectations for the third quarter, as well as details on their steel operations, steel fabrication operations, and metals recycling operations. It also includes relevant information about flat-rolled steel prices and order activity. The article is factual and objective without any digressions or personal opinions.
Noise Level: 3
Noise Justification: The article provides specific financial information about a company’s earnings and expectations for the third quarter but lacks broader context or analysis of industry trends or implications. It does not explore consequences of decisions or provide actionable insights.
Public Companies: Steel Dynamics (STLD)
Key People: Stephen Nakrosis (Author)
Financial Relevance: Yes
Financial Markets Impacted: Steel and related industries
Financial Rating Justification: The article discusses Steel Dynamics’ earnings per share and its expectations for third-quarter results, which can impact the financial markets and companies in the steel industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in this article.
Move Size: No market move size mentioned.
Sector: All
Direction: Down
Magnitude: Medium
Affected Instruments: Stocks
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