FORT WAYNE, Ind., Dec. 16, 2021 /PRNewswire/ -- Steel
Dynamics, Inc. (NASDAQ/GS: STLD) today provided fourth quarter 2021
earnings guidance in the range of $5.46 to $5.50 per
diluted share, representing record quarterly performance. Excluding
the impact from the following items, the company expects fourth
quarter 2021 adjusted earnings to be in the range of $5.69 to $5.73 per
diluted share.
- Additional performance-based companywide special compensation
of approximately $21 million, or
$0.08 per diluted share, awarded to
all non-executive, eligible team members in recognition of the
company's exceptional record annual performance.
- Costs of approximately $43
million, or $0.15 per diluted
share (net of capitalized interest), associated with construction
and startup of the company's Sinton Texas Flat Roll Steel Mill
growth investment.
Comparatively, the company's sequential third quarter 2021
earnings were $4.85 per diluted
share, and adjusted earnings were $4.96 per diluted share, excluding the impact of
construction and startup costs related to the Texas steel mill of $0.11 per diluted share. Prior year fourth
quarter earnings were $0.89 per
diluted share and adjusted earnings were $0.97 per diluted share, excluding the following:
additional financing costs of $11
million, or $0.04 per diluted
share, related to the company's October
2020 refinancing activities; costs of approximately
$14 million, or $0.05 per diluted share (net of capitalized
interest), associated with construction of the company's Sinton
Texas Flat Roll Steel Mill growth investment, non-cash asset
impairment charges of $17 million
(net of non-controlling interest), or $0.06 per diluted share related to certain
noncore oil and gas investments, and a tax benefit of $13 million (net of non-controlling interest), or
$0.06 per diluted share, related to
the reduction of a valuation allowance.
Fourth quarter 2021 profitability from the company's steel
operations is expected to be higher than third quarter results
setting a new quarterly record, driven by strong underlying steel
demand and metal spread expansion across the platform, more than
offsetting seasonally lower steel shipments. Domestic steel demand
remains strong, with the automotive, construction, and industrial
sectors continuing to lead the momentum.
Fourth quarter 2021 earnings from the company's metals recycling
operations are expected to be aligned with sequential third quarter
results, based on improved metal margins despite modestly lower
selling values and offsetting lower shipments. Many domestic steel
mills had planned maintenance outages throughout the fourth quarter
2021, which lowered ferrous scrap demand.
Fourth quarter 2021 earnings from the company's steel
fabrication operations are expected to be more than two and
one-half times higher than sequential record third quarter results,
as significantly higher selling values and near-record shipments,
meaningfully more than offset higher steel input costs. The
non-residential construction sector remains strong as evidenced by
robust order activity, resulting in another record order backlog
and record forward-pricing for the company's steel fabrication
platform. The company anticipates this momentum to continue through
2022 based on these dynamics.
Based on continued confidence in cash flow generation, the
company also repurchased approximately $320
million, or 2.5 percent, of its common stock during the
fourth quarter 2021 through December 14,
2021. Year-to-date 2021, the company repurchased
$1.1 billion, or approximately 8
percent of its common stock.
About Steel Dynamics, Inc.
Steel Dynamics is one of
the largest domestic steel producers and metals recyclers in
the United States, based on
estimated annual steelmaking and metals recycling capability, with
facilities located throughout the United
States, and in Mexico.
Steel Dynamics produces steel products, including hot roll, cold
roll, and coated sheet steel, structural steel beams and shapes,
rail, engineered special-bar-quality steel, cold finished steel,
merchant bar products, specialty steel sections and steel joists
and deck. In addition, the company produces liquid pig iron and
processes and sells ferrous and nonferrous scrap.
Note Regarding Non-GAAP Financial Measures
The company
reports its financial results in accordance with U.S. generally
accepted accounting principles (GAAP). Management believes that
Adjusted Diluted Earnings Per Share, a non-GAAP financial measure,
provides additional meaningful information regarding the company's
performance and financial strength. Non-GAAP financial measures
should be viewed in addition to, and not as an alternative for, the
company's reported results prepared in accordance with GAAP. In
addition, because not all companies use identical calculations,
Adjusted Diluted Earnings Per Share included in this release may
not be comparable to similarly titled measures of other
companies.
Forward-Looking Statements
This press release contains
some predictive statements about future events, including
statements related to conditions in domestic or global economies,
conditions in steel and recycled metals market places, Steel
Dynamics' revenues, costs of purchased materials, future
profitability and earnings, and the operation of new, existing or
planned facilities. These statements, which we generally precede or
accompany by such typical conditional words as "anticipate",
"intend", "believe", "estimate", "plan", "seek", "project", or
"expect", or by the words "may", "will", or "should", are intended
to be made as "forward-looking," subject to many risks and
uncertainties, within the safe harbor protections of the Private
Securities Litigation Reform Act of 1995. These statements speak
only as of this date and are based upon information and
assumptions, which we consider reasonable as of this date,
concerning our businesses and the environments in which they
operate. Such predictive statements are not a guarantee of future
performance, and we undertake no duty to update or revise any such
statements. Some factors that could cause such forward-looking
statements to turn out differently than anticipated include: (1)
domestic and global economic factors; (2) global steelmaking
overcapacity and steel imports, together with increased scrap
prices; (3) pandemics, epidemics, widespread illness or other
health issues, such as the COVID-19 pandemic; (4) the cyclical
nature of the steel industry and the industries we serve; (5)
volatility and major fluctuations in prices and availability of
scrap metal, scrap substitutes, and our potential inability to pass
higher costs on to our customers; (6) cost and availability of
electricity, natural gas, oil, or other resources are subject to
volatile market conditions; (7) compliance with and changes in
environmental and remediation requirements; (8) increased
regulation associated with the environment, climate change,
greenhouse gas emissions and sustainability; (9) significant price
and other forms of competition from other steel producers, scrap
processors and alternative materials; (10) availability of an
adequate source of supply for our metals recycling operations; (11)
cybersecurity threats and risks to the security of our sensitive
data and information technology; (12) the implementation of our
growth strategy; (13) litigation and legal compliance, (14)
unexpected equipment downtime or shutdowns; (15) governmental
agencies may refuse to grant or renew some of our licenses and
permits; (16) our senior unsecured credit facility contains, and
any future financing agreements may contain, restrictive covenants
that may limit our flexibility; and (17) the impacts of
impairment.
More specifically, refer to Steel Dynamics' more detailed
explanation of these and other factors and risks that may cause
such predictive statements to turn out differently, as set forth in
our most recent Annual Report on Form 10-K under the headings
Special Note Regarding Forward-Looking Statements and Risk Factors,
in our quarterly reports on Form 10-Q, or in other reports which we
file with the Securities and Exchange Commission. These are
available publicly on the Securities and Exchange Commission
website, www.sec.gov, and on the Steel Dynamics website,
www.steeldynamics.com under "Investors — SEC Filings".
View original
content:https://www.prnewswire.com/news-releases/steel-dynamics-provides-fourth-quarter-2021-record-earnings-guidance-301446566.html
SOURCE Steel Dynamics, Inc.