Boston, MA 09/18/2014 (wallstreetpr) – Steel Dynamics, Inc. (NASDAQ:STLD) provided a bullish view of the current quarter, coming as another strong indication from the management that the company has a strong future in the steel business. Its recent acquisitions and strong management culture are also expected to keep the company growing for the long-term. Returning value to shareholders remain among the company’s top agendas as it recently announced a quarterly dividend and also said the recent acquisition would enhanced shareholder value.
Steel Dynamics, Inc. (NASDAQ:STLD)’ new story begins with the 3Q2014 EPS forecast of $0.34-$0.38, taking into account $38 million in pre-tax charges due to the acquisition and other financing arrangements. As such, excluding the charges, the adjusted EPS for 3Q is expected in the band of $0.42-$0.46, which compares favorably with $0.25 in the previous year and stands above the consensus estimate of $0.37.
Areas of strength
Steel Dynamics, Inc. (NASDAQ:STLD) said earnings g in 3Q are expected to draw support from improvement in volume and profit margins. The company also boasts about injecting a dose of efficiency in its operations, which should bring money to the bottom line.
The $38 million charge cited above is due to the acquisition of Severstal Columbus, which is expected to add one of the most advanced mini-mills to Steel Dynamics’ North American asset portfolio. The acquisition saw $1.625 billion changing hands in favor of Severstal Columbus. The deal was funded with $1.2 billion in senior unsecured notes, $350 million available cash and some borrowings.
Commenting on the completion of the acquisition, Mark D. Millett, the CEO of Steel Dynamics, Inc. (NASDAQ:STLD), stated that the move is worthwhile for the company, its employees and shareholders. He cited that there will be immense cash, earnings and scale benefits to the company due to the acquisition.
Dividend declared
Steel Dynamics, Inc. (NASDAQ:STLD) said it would pay a quarterly dividend of $0.115 per share to its shareholders of record as of September 30. The actual payment date is October 10.
