WASHINGTON (dpa-AFX) - Steel Dynamics Inc (STLD) on Monday reported a 59 percent surge in profit for the third quarter from last year, helped mainly by higher shipments of steel that helped offset acquisition charges. Both revenue and adjusted earnings per share for the quarter beat analysts' estimates.
Mark Millett, Chief Executive Officer of Steel Dynamics said, 'Our consolidated operating income increased 43 percent to $189 million for the third quarter 2014, as compared to the second quarter. During the third quarter, we achieved record volumes in fabrication and steel, even before including the results from our recent acquisition.'
The Fort Wayne, Indiana-based steel products maker's third-quarter net income attributable to the company was $91.17 million or $0.38 per share, up from $57.49 million or $0.25 per share in the year-ago period.
The latest quarter's results include the negative impact of about $0.09 per share related to acquisition costs, financing fees, and the effect of purchase accounting adjustments for the Severstal Columbus, LLC acquisition that occurred mid-September.
Excluding charges, adjusted earnings for the latest quarter were $0.47 per share. On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $0.43 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter grew 23 percent to $2.34 billion from $1.91 billion in the prior-year quarter and beat analysts' consensus revenue estimate of $2.14 billion.
Steel shipments for the quarter climbed 19 percent to 1.90 million tons from 1.59 million tons last year, and average external sales price per ton rose 6 percent to $840 from $794.
However, ferrous metal shipments decreased 1 percent to 1.45 million tons from 1.47 million tons a year ago, while average ferrous scrap cost per ton increased 2 percent to $356 from $349.
Steel fabrication operations' shipments increased 41 percent to 143,737 tons from 101,590 tons last year, while average sales price per ton increased 13 percent to $1,322 from $1,174 in the year-ago period.
In mid-September, Steel Dynamics completed its $1.625 billion acquisition of Severstal Columbus from OAO Severstal. The deal expands Steel Dynamics' annual steel shipping capacity to 11 million tons.
Looking ahead, Millett said, 'We continue to be the beneficiaries of strong end markets, such as automotive, manufacturing, transportation and energy. We also believe growth in the construction market will continue as evidenced by the increased demand for our construction-related steel products.'
STLD closed Monday's trading at $21.10, up $0.04 or 0.19 percent on a volume of 6.25 million shares. In after hours, the stock further gained $0.40 or 1.90 percent to $21.50.
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