UPDATE: Steel Dynamics Guides Q4 EPS $0.08-0.12 vs $0.17 Est

Steel Dynamics, Inc.

today announced that its board of directors has declared a quarterly cash dividend of $0.10 per common share. The dividend is payable on or about January 13, 2012, to shareholders of record at the close of business on December 31, 2011. The company also expects fourth quarter earnings to be in the range of $0.08 to $0.12 per diluted share, higher than fourth quarter 2010 earnings of $0.04 per diluted share, but lower than third quarter 2011 earnings of $0.19 per diluted share, primarily due to an estimated 25% drop in anticipated fourth quarter flat rolled earnings and an estimated $10 million reduction in earnings from the company's liquid iron production facility, Iron Dynamics (

). The reduction in fourth quarter IDI earnings was attributable to a planned three week shutdown during October and November for the relining of the facility's submerged arc furnace, resulting in an anticipated 20% decrease in quarterly shipments and increased expenses of just over $3 million related to the project. Iron Dynamics achieved a time span of two years since the previous relining, a record. Flat rolled demand during October and the first part of November was weaker, and early in the quarter pricing remained a challenge, reducing anticipated volumes. Additionally, the cost of raw materials consumed did not decline in step with realized flat rolled steel prices, which resulted in reduced fourth quarter anticipated margins. As increases in order entry and pricing occurred late in the fourth quarter, these positive factors did not materially impact fourth quarter performance, but are expected to be beneficial to the first quarter of 2012. Overall, continued uncertainty within the U.S. and global economies continues to impact corporate and consumer spending, resulting in a challenging demand environment. However, demand improvement is occurring in the energy, construction equipment, agricultural, and automotive sectors. The company believes if more stability develops into next year demand could be expected to increase, along with steel pricing and margins.