Steel Dynamics, Inc. STLD issued third-quarter earnings guidance Tuesday in the range of 66 to 70 cents per diluted share vs. a Street estimate of 71 cents.
The company said it expects third-quarter earnings from the company's steel operations to decrease sequentially from the second quarter.
Steel Dynamics cited "lower profitability from the company's sheet steel operations, as shipments and average steel pricing declined in the quarter, more than offsetting lower scrap costs."
The underlying demand for domestic steel "remains principally intact" for the primary steel-consuming sectors, according to Steel Dynamics, with the construction segment being particularly strong.
The company also expects lower third-quarter profits in its metals recycling platform.
Earnings from the steel fabrication business are expected to improve sequentially, according to Steel Dynamics.
"The company continues to experience strong steel fabrication order backlogs and customers remain optimistic concerning non-residential construction projects."
Steel Dynamics shares were trading down 1.07% at $30.63 in Wednesday’s premarket session. The stock has a 52-week high of $48.17 and a 52-week low of $25.02.
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