Steel Dynamics (STLD) Declares $0.075 Quarterly Dividend; 2.1% Yield; Provides Updated Q310 EPS Outlook Below the Street

Steel Dynamics, Inc. (Nasdaq: STLD) declared a quarterly cash dividend of $0.075 per common share, $0.30 annualized. The dividend is payable on or about October 14, 2010, to shareholders of record at the close of business on September 30, 2010. The ex-dividend date is September 28, 2010. Yield on the dividend is 2.1%. STLD also sees Q310 EPS of $0.05 - $0.10. The EPS is negatively impacted by reduced margins within the steel segment. Metals recycling operations will also be negatively impacted by quarter over quarter reduced ferrous metal spreads and reduced volumes. Consensus is looking for an EPS of $0.21. Mesabi Nugget Q3 production is expected to be 65 - 70% comparatively, though quarterly nugget sales prices are expected to decline 10%. STLD expected Q3 EPS to be reduced by Mesabi Nugget by about $0.04 per share. Tax rate for the quarter is also expected to be higher, related to state income tax adjustments which will require a catch-up to reflect the increased rate for the first six months of the year. This will decrease Q310 EPS by about $0.02. An unexpected charge related to railroad tie operations will also reduce EPS by $0.01.... Read more

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