Steel Dynamics forecasts third-quarter earnings above Wall Street expectations

Steel Dynamics targets above-expectation profit

FORT WAYNE, Ind. — Steel Dynamics Inc. estimated that it will post third-quarter earnings above Wall Street targets if demand for flat-roll steel remains steady and the market for recycled metals continues to recover.

The company, which assumed continued sluggish demand for long steel products, said late Wednesday it expects to earn 10 cents to 20 cents per share in the September quarter.

Analysts were expecting 10 cents per share, according to a survey by Thomson Reuters.

The company said it would update the guidance in early September.

Steel Dynamics made the comments as it reported that second-quarter revenue plunged 67 percent from a year earlier due to weak demand and lower prices for steel and recycled metals. The company lost $16 million, or 8 cents per share, in the second quarter. Analysts had expected a loss of 11 cents per share.