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Showing posts with label STLD. Show all posts
Showing posts with label STLD. Show all posts

Tuesday, July 19, 2016

Steel Dynamics (STLD) reported earnings on Mon 18 Jul 2016 (a/h)

** charts before earnings **



 



** charts after earnings **





Steel Dynamics beats by $0.02 (and tops prior guidance), reports revs in-line; anticipates Q3 improvement in flat roll metal spreads  :
  • Reports Q2 (Jun) earnings of $0.58 per share (prior guidance was for EPS of $0.53-0.57), $0.02better than the Capital IQ Consensus of $0.56; revenues rose 0.9% year/year to $2.02 bln vs the $2.04 bln Capital IQ Consensus.
  • Outlook:  "Steel customer inventory levels have moderated and import levels have declined... When combined with steady underlying demand, the result has been an improvement in domestic flat roll steel producer utilization, and we anticipate improved flat roll metal spreads in the third quarter 2016. The successful market and product diversification that we achieved at Columbus during 2015 is one of our key differentiators for anticipated improved annual profitability in 2016. As an example, Columbus achieved a record six month production level in the first half 2016, while continuing to improve and diversify its value-added production capability....However, aside from the construction sector, long product steel demand is generally challenged, and selling values are under pressure from excess domestic production capability. The robust increase in second quarter 2016 long product group shipments was due, in part, to customers buying ahead of the significant scrap cost increase in May. While we also anticipate metal spread expansion for our long products group in the third quarter 2016, lower shipments related to the customers buying ahead could offset related margin gain."