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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowShares of Steel Dynamics plunged more than 20 percent this morning, to $6.80, after the company announced late yesterday that it expects to report a first-quarter loss of 40 cents to 45 cents a share due to shrinking demand.
The nation’s fifth-largest steelmaker by market value had projected first-quarter profit of 5 cents to 10 cents a share. Fort Wayne-based Steel Dynamics is among several U.S. steel producers that have slashed output as global economic growth slows.
“We had earlier suggested the possibility of 2009 earnings that could be comparable or close to those of 2008, but we now recognize that the entire year will be more challenging,” CEO Keith Busse said in a written statement.
About $70 million, or 25 cents a share, of the estimated loss relates to non-cash inventory adjustments reflecting market conditions at the company’s flat-rolled steel division.
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