Post-Earnings Insight and Analysis - Steel Dynamics

LONDON, November 5, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings insight and analysis on Steel Dynamics Inc. (NASDAQ: STLD). On October 20, 2014, the company reported its financial results for Q3 FY14 (period ended September 30, 2014). Click on http://www.investor-edge.com/FreeReports to read our free earnings review on Steel Dynamics Inc. During Q3 FY14, Steel Dynamics Inc.'s net sales increased by $0.43 billion on a Y-o-Y basis and diluted EPS rose by $0.13 from the preceding year quarter. Our free coverage report can be accessed at:

http://www.investor-edge.com/register

Earnings Overview 

During Q3 FY14, Steel Dynamics Inc. reported net sales of $2.34 billion compared to $1.91 billion in the same period last year. The company's net sales during the reported quarter outperformed Bloomberg analysts' forecast of $2.14 billion. Operating income for Q3 FY14 increased to $188.64 million from $113.27 million in the prior-year quarter. Further, the company's net income broadened to $91.17 million, or $0.38 per diluted share, in Q3 FY14, from $57.49 million, or $0.25 per diluted share, in the same quarter last year. Analysts from Bloomberg had expected the company to report net income of $94.90 million, or $0.35 per diluted share, in Q3 FY14. The free research on STLD can be downloaded as in PDF format at:

http://www.Investor-Edge.com/STLDFreeReport

Mark Millett, CEO of Steel Dynamics Inc., said that he is pleased with the company's operational and financial performance. Steel Dynamics' consolidated operating income increased 43% to $189 million for Q3 FY14, compared to Q2 FY14. He further stated that during Q3, the company achieved record volumes in fabrication and steel, even before including the results from its recent acquisition. Despite the continued elevated levels of steel imports into the U.S., the strength of underlying demand, coupled with the company's market diversification and customer focus supported its record shipments, and the company remain optimistic heading towards the end of the year, he added. Sign up and read the free analyst's notes on STLD at:

http://www.Investor-Edge.com/STLD-05112014

The company completed its acquisition of Severstal Columbus, LLC (Columbus) on September 16, 2014. The reported quarterly results include the negative impact of approximately $0.09 per diluted share related to acquisition costs, financing fees, and the effect of purchase accounting adjustments for the acquisition. The acquisition and financing costs are reflected in the company's consolidated income statement as other expense and the purchase accounting adjustments are reflected as additional costs of goods sold. Excluding these charges, the company's Q3 FY14 earnings would have been $0.47 per diluted share.

Commenting on the acquisition of the Columbus flat roll steel mill, Mr. Millett stated that Steel Dynamics added one of the most technologically advanced steel mills in the U.S. to its portfolio. He further commented that the acquisition of Columbus represents a significant step in the continuation of the company's growth strategy, and it leverages the company's core strengths, further increasing value-added product and market diversification. Visit Investor-Edge and access the latest research on STLD at:

http://www.Investor-Edge.com/STLDEarningsCoverage

Relating to the Columbus acquisition, during Q3 FY14, the company issued $1.2 billion senior unsecured notes comprised of a $700 million 5.125% seven-year tranche and $500 million 5.500% ten-year tranche. The remainder of the $1.6 billion purchase price was paid with a combination of available cash and borrowings on the company's revolving credit facility.

Stock Performance 

On the following day of the earnings release, October 21, 2014, Steel Dynamics Inc.'s stock ended the session at $21.90, up 3.79%. The company's stock saw mixed momentum since then. On the last close, Tuesday, November 04, 2014; it finished at $22.23, 1.90% below its previous day's closing price, after vacillating between $21.81 and $22.64. A total of 3.03 million shares were traded, which was below its three months average volume of 3.99 million shares. Over the previous three trading sessions, the company's shares have fallen by 1.46%. However, the stock has gained 2.77% over the last one month and 13.77% from the beginning of 2014. Shares of Steel Dynamics Inc. closed above their 200-day moving average. Moreover, the stock's 50-day moving average of $22.67 is greater than its 200-day moving average of $19.46. Furthermore, the stock traded at a PE ratio of 18.76 and has a Relative Strength Index (RSI) of 56.27.

Sneak Peek to Corporate Insider Trading 

In the last one month Steel Dynamics Inc. has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on STLD is available at:

http://www.Investor-Edge.com/STLDInsiderTrading

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