Nucor, SDI Say Lower Steel Prices Likely to Weigh on Q3 Profits
Steel Dynamics said it expects to report earnings in the range of 66 to 70 cents per diluted share, down from US$1.69 per share in the same quarter last year.
“The reduced earnings are primarily related to 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. Underlying domestic steel demand remains principally intact for the primary steel consuming sectors, with particular strength in construction,” the company said.
Meanwhile, Nucor said it is projecting earnings of between 75 cents and 80 cents per diluted share, down from US$2.13 per diluted share in the third quarter of 2018. Nucor said the drop was due in part to lower prices for sheet and plate.
“Although we still see stability in most of the end use markets that we serve, there has been some softening in automotive, agricultural products and power transmission markets,” it said.