Steel Dynamics profit plunges
(Reuters) - Steel producer and metals recycler Steel Dynamics Inc's (STLD.O) second-quarter earnings plunged more than 50 percent, hurt by falling sheet steel prices.
This is the second straight quarter when profit more than halved for the Fort Wayne, Indiana-based company.
Net earnings fell to $44 million, or 20 cents per share, from $99 million, or 43 cents per share, a year earlier.
Revenue marginally dropped to $1.9 billion.
Analysts on average had expected a profit of 19 cents a share on revenue of $1.9 billion, according to Thomson Reuters I/B/E/S.
"Decreases in flat roll pricing related to both supply-side pressure caused by increased imports and increased domestic capacity, resulted in somewhat decreased margins," Chief Executive Mark Millett said.
Global steel output slipped in June as the industry grapples with weak demand and falling prices, data from World Steel Association (Worldsteel) showed last week.
Crude steel production declined by 0.1 percent to 128 million tonnes in June, compared with the same month a year earlier.
Rival Nucor Corp (NUE.N) reported a lower second-quarter profit and forecast a "modest" reduction in third quarter earnings last week.
Steel Dynamics' Millett said order rates could be "somewhat uneven" throughout the third quarter and that the ferrous scrap pricing fell further in July, which could further challenge the company's metals recycling operations.
Shares of Steel Dynamics closed at $12.22 Monday on the Nasdaq.
(Reporting by Thyagaraju Adinarayan and Steve James; Editing by Maju Samuel)
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