WASHINGTON (dpa-AFX) - Steel Dynamics Inc. (STLD) on Tuesday reported a profit for the fourth quarter that almost quadrupled from last year, when results included an impairment charge. The company's shares rose almost 2 percent in after-hours trading. The Fort Wayne, Indiana-based steelmaker's net income for the fourth quarter surged to $30.20 million or $0.14 per share from $7.79 million or $0.04 per share in the year-ago period. On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.11 per share. Analysts' estimates typically exclude special items. The prior-year period's results included impairment charges of $12.81 million. Net sales for the quarter rose 22 percent to $1.86 billion from $1.53 billion in the prior-year quarter, but missed analysts' consensus estimate of $1.87 billion. Mark Millett, President and Chief Executive Officer of Steel Dynamics said, 'We are pleased with the strong revenue and bottom-line performance in both the quarter and for the year in comparison to prior year results. We achieved both quarterly and annual organic sales growth of over 20 percent, and nearly doubled our annual pretax earnings in a challenging environment.' Volumes in each of the company's operating segments increased in the latest quarter compared to the prior-year period, but decreased when compared to the third quarter of 2011. Operating income rose 76 percent from the year-ago period, but decreased 24 percent in comparison to the preceding third quarter, primarily due to compressed flat roll margins and Iron Dynamics' planned three week maintenance shutdown, which reduced operating income by $10 million. Steel shipments during the quarter increased 11 percent from the year-ago period to 1.47 million tons. Average external steel selling price for the quarter rose 13 percent from the year-ago period to $853 per ton, while average ferrous scrap cost per ton melted increased 20 percent to $407.
The company's steel operations reported net sales of $1.22 billion for the quarter, representing 63 percent of the company's external sales, up from $966.83 million in the prior-year quarter. Net sales for metals recycling and ferrous resources segment grew 18 percent to $907.03 million. The segment represented 32 percent of the company's external net sales. Steel fabrication segment net sales surged 38 percent to $78.68 million, and represented 4 percent of the company's external net sales. For fiscal year 2011, Steel Dynamics' net income almost doubled to $278.12 million or $1.22 per share from $140.71 million or $0.64 per share in the prior year. Analysts expected the company to earn $1.20 per share for the year. Net sales for the year grew 27 percent to $8.0 billion from $6.3 billion last year and topped analysts consensus estimate of $7.98 billion.
Looking ahead to fiscal year 2012, the company said it was optimistic, despite continued uncertainty within the U.S. and global economies. STLD closed Tuesday's trading at $15.46, up $0.13 or 0.85 percent on a volume of 3.46 million shares. In after-hours, the stock further gained $0.29 or 1.88 percent to $15.75.
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