Steel Dynamics Inc. (STLD), a prominent player in the steel manufacturing sector, released its earnings forecast for the fourth quarter on Monday, presenting figures that fall short of market expectations set by analysts.
The company anticipates its fourth-quarter earnings to be in the bracket of $1.26 to $1.30 per share. This is in contrast to the projections of $1.59 per share from an average of eight analysts surveyed by Thomson Reuters. Notably, these analyst predictions generally omit any special items.
Steel Dynamics foresees a significant decrease in profitability for its steel operations during the fourth quarter compared to the third quarter's sequential results. This downturn is attributed to several factors, including a decline in average realized pricing, a seasonal reduction in shipments, and an unexpected disruption at the Butler Flat Roll Division which is expected to diminish output by approximately 50,000 tons.
Conversely, the company's metals recycling operations are predicted to show a substantial improvement in earnings for the fourth quarter of 2024, compared to the previous quarter. This positive outlook is underpinned by consistent ferrous volume and stable average realized pricing.
However, the steel fabrication sector's earnings for the fourth quarter of 2024 are anticipated to decrease from the third quarter’s figures. This is due to seasonal reductions in shipments coupled with a less than five percent decline in average realized pricing.
