Steel Dynamics Bracing Shareholders for Bad News

The company has 7

Fort Wayne-based Steel Dynamics Inc. (Nasdaq: STLD) is anticipating a dip in earnings ahead of its fourth quarter report. The company says the lower earnings are the result of continued high levels of steel imports and lower demand.

Steel Dynamics provided shareholders with fourth quarter 2015 earnings guidance between $0.03 and $0.07 per diluted share, compared with $0.40 per diluted share in fourth quarter 2014. The fourth quarter numbers are also down from third quarter 2015, which saw earnings of $0.25 per diluted share.

The company says despite lower earnings, it does expect to generate cash flow in excess of $200 million in the fourth quarter. That would result in record-high liquidity at the end of the year.