April 19, 2010 / 10:08 PM / in 9 years

UPDATE 2-Steel Dynamics Q1 beats market; shares up

* Q1 EPS $0.29 vs est. of $0.26

* Q1 rev $1.6 bln vs est. of $1.37 bln

* Shares up 3 pct after mkt (Recasts; adds details)

April 19 (Reuters) - Steel Dynamics Inc (STLD.O) posted first-quarter results that beat analysts’ estimates, on higher shipping volumes and prices, and said it sees a more stable and positive outlook for the rest of the year.

“A gradually improving economy with moderate strengthening of steel demand is resulting in firmer order backlogs for our mills, which also implies continued better conditions for the scrap markets,” Chief Executive Keith Busse said.

However, Busse said the company has not yet seen signs of a significant rebound in its construction-related businesses.

In the latest quarter, the fifth-largest steelmaker in the United States posted a net income of $65 million, or 29 cents a share, compared with a loss of $88 million, or 48 cents a share, a year ago.

Quarterly revenue rose to $1.6 billion, with the company’s flat-rolled, long steel and galvanized steel sheets helping bring in revenue of about $1 billion.

Analysts, on average, had expected earnings of 26 cents a share, before items, on revenue of $1.37 billion, according to Thomson Reuters I/B/E/S.

On March 9, the company had said it was seeing robust order entry and pricing improvement in the quarter.

Steel shipments for the first quarter climbed 20 percent, sequentially, while steel prices rose by $50 to $736 a ton.

Shares of the Fort Wayne, Indiana-based company rose to as much as 17.99 in trading after the bell. They closed at $17.52 Monday on Nasdaq. (Reporting by Antonita Madonna Devotta in Bangalore; Editing by Unnikrishnan Nair)

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