Posted on 12 Mar 2009
Steel Dynamics Inc said it expects to post a loss in the first quarter due to weaker-than-expected shipping volumes at its steel operations, persistent weakness in its metals recycling segment and non-cash inventory adjustments.
The company expects a loss of between 40 cents and 45 cents a share for the first quarter, compared with its earlier forecast of a profit of 5 cents to 10 cents a share.
Analysts, on average, were expecting earnings of 8 cents a share, before items, according to Reuters Estimates.
Steel Dynamics, the sixth-largest steel maker in the
The metals recycling unit is expected to report a loss as scrap prices continue to fall and recycled-metals shipping volumes come in much lower than projected, the company said.
The company also said that about $70 million, or about 25 cents a share, of the estimated first-quarter loss is related to non-cash inventory adjustments required to reflect current market conditions at its Flat Roll Division.
"The outlook for the remainder of 2009 remains clouded," Steel Dynamics' Chief Executive Keith Busse said in a statement.
Shares of the company fell 9 percent to $7.80 in trading after the bell. The closed at $8.55 Wednesday on Nasdaq.
