FORT WAYNE, Ind., June 17, 2019 /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) today provided second quarter 2019 earnings guidance in the range of $0.86 to $0.90 per diluted share. Comparatively, the company's sequential first quarter 2019 earnings were $0.91 per diluted share and prior year second quarter earnings were $1.53per diluted share.
Second quarter 2019 earnings from the company's steel operations is expected to decrease in comparison to sequential first quarter results. Although average product pricing declined across the steel platform, the reduced earnings were primarily related to lower profitability from the company's long product steel operations, as shipments and metal spread declined in the quarter. Underlying domestic steel demand remains intact although steel buying hesitancy and inventory destocking has resulted from a weakening scrap price environment.
Second quarter 2019 profitability for the company's metals recycling platform is expected to decrease when compared to sequential first quarter results, principally based on reduced ferrous metal spread as average pricing declined through the quarter.
Second quarter 2019 earnings from the company's steel fabrication business are expected to improve from sequential first quarter results, due to both higher shipments and metal spread expansion, as demand remains strong and steel input costs decline. The order backlog is stronger than it was at this time last year, and customers remain optimistic concerning non-residential construction projects entering the summer construction season, although the unusually wet weather across the United States has caused some construction project delays.
About Steel Dynamics, Inc.
Steel Dynamics is one of the largest domestic steel producers and metals recyclers in the United States based on estimated annual steelmaking and metals recycling capability, with facilities located throughout the United States, and in Mexico. Steel Dynamics produces steel products, including hot roll, cold roll, and coated sheet steel, structural steel beams and shapes, rail, engineered special-bar-quality steel, cold finished steel, merchant bar products, specialty steel sections and steel joists and deck. In addition, the company produces liquid pig iron and processes and sells ferrous and nonferrous scrap.