Steel Dynamics issues weak 1Q earnings outlook

Steel Dynamics Inc. on Tuesday issued a first-quarter earnings outlook that mostly fell below analysts' estimates, citing weakness in its structural steel and fabrication operations.

The company forecasts earnings of 22 cents to 27 cents per share in the first quarter. The midpoint of that guidance is below the 26-cents-per-share expected by analysts polled by Thomson Reuters.

Steel Dynamics is the nation's fifth-largest producer of carbon steel products. The company has cut costs and boosted production during the recession, and CEO Keith Busse said last month that he sees signs of improvement in the industry.

On Tuesday, the company said it is benefiting from "robust order entry activity" and rising scrap prices, which boosts profits at its metal recycling operations. Still, it said demand for structural steel used in construction remains weak.

Shares fell 23 cents to close at $17.73.

The company also declared a quarterly cash dividend of 7 cents per share to be paid on April 12 to shareholders on record as of close of business March 31.