WASHINGTON (dpa-AFX) - Steel products maker Steel Dynamics, Inc. (STLD) reported Monday a profit for the first quarter that decreased from last year, despite sales growth, reflecting higher costs of goods. Earnings per share topped analysts' expectations by a penny, while quarterly net sales missed their estimates.
'The first quarter 2014 was one of the most severe winter periods in recent history across much of the United States, especially in the Midwest where a majority of our operations are located. The uncharacteristically severe and prolonged winter weather conditions resulted in increased energy costs, reduced production, diminished availability of transportation and lower shipments,' CEO Mark Millett said in a statement.
The Fort Wayne, Indiana-based maker of hot rolled, cold rolled, and coated steel products reported net income of $38.58 million or $0.17 per share for the first quarter, lower than $48.22 million or $0.21 per share in the prior-year quarter.
On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $0.16 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter increased to $1.83 billion from $1.80 billion in the same quarter last year, but missed twelve Wall Street analysts' consensus estimate of $1.86 billion.
The company's steel operations reported net sales of $1.19 billion for the first quarter, up from $1.14 billion in the prior-year quarter.
Steel shipments for the quarter edged down to 1.45 million tons from last year's 1.47 million tons, and average selling price increased $46 year-over-year to $835 per ton. The average ferrous scrap cost per ton melted increased $29 per ton to $380 per ton.
Net sales for metals recycling and ferrous resources segment grew to $993.51 million from $914.57 million last year. Steel fabrication segment net sales totaled $115.86 million, up from $94.38 million a year ago.
Looking ahead, Millett said, 'Steel consuming industries, such as manufacturing, automotive, heavy machinery and the construction market continue to grow, indicative of underlying strength in steel demand. We are poised to be the beneficiaries.'
STLD closed Wednesday's regular trading session at $18.90, up $0.04 or 0.21% on a volume of 2.65 million shares.
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