Steel Dynamics (STLD) reported late on Monday second-quarter results that missed the market’s guidance for sales and earnings in a “challenging steel pricing environment,” about 16 months after President Donald Trump announced tariffs on foreign-made steel to support the US domestic industry.
Net sales fell to $2.77 billion during the three months that ended June 30, from $3.09 billion a year ago, missing the $2.78 billion average analyst estimate compiled by Capital IQ.
“A weakening scrap price environment coupled with steel inventory destocking led to steel buying hesitancy,” Chief Executive Officer Mark Millett said in an earnings statement.
Unadjusted earnings per diluted share also declined, down to $0.87 from $1.53 a year earlier, lagging the $0.88 the market’s forecast by just one cent. Sequential first-quarter net income was at $0.91 per diluted share.
The firm said that the sequential decline resulted from metal-spread compression, which more than offset the 3% increase in overall steel shipments. The second-quarter average external product selling price for the group’s overall steel operations fell $23 sequentially to $879 per ton. The average ferrous scrap cost per ton was also lower by $22 to $316 per ton.
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