Steel Dynamics 2Q profit more than doubles

The steel producer also raised its guidance even though it said it there could be a decline in steel and scrap shipments during the third quarter, followed by a weak fourth quarter.

Second-quarter net income rose to $210.5 million, or $1.05 per share, from $93.9 million, or 48 cents per share, in the year-earlier period. Revenue also more than doubled to $2.4 billion from $911.2 million.

Analyst polled by Thomson Financial expected profit of 93 cents per share on revenue of $2.35 billion.

Steel Dynamics said profit from steel operations continue to improve on strong shipments and higher sales values. Meanwhile, demand for recycled scrap has remained strong.

Steel operations represented 56 percent of sales, the company said, and the average selling price per ton for the unit was $1,011, an increase of 29 percent from the prior year.

Looking ahead, the company said it expects third-quarter profit of $1.05 to $1.15 per share. The company also boosted its full-year profit outlook to a range $3.80 and $3.90 per share from a previous forecast of $3 to $3.25 per share.

Analysts expect profit third-quarter profit of 97 cents per share and full-year profit of $3.46 per share.

Steel Dynamics shares slipped 38 cents to $32.58 in Tuesday morning trading.