April 26, 2017

SDI Sees Big Jump in Quarterly Income

Steel Dynamics, Inc., Fort Wayne, Ind., reported first-quarter net income of $201 million, an increase of 219 percent from the same quarter in 2016. The results represented a ten-fold increase from the prior quarter. Sales for the minimill company totaled $2.4 billion, an increase of 41.1 percent compared with first-quarter 2016.

“The team executed well and delivered a strong first-quarter performance with all of our operating platforms improving profitability," said Mark D. Millett, president and CEO. "Our first-quarter 2017 income from operations increased over 75 percent sequentially to $335 million with adjusted EBITDA of $421 million. The increase in our earnings was principally driven by our flat-roll operations, as demand was strong and customer inventory levels continued to be positioned at historically low levels.”

SDI also experienced increased shipments from its long product steel divisions as demand from the automotive sector remained steady and construction continued to improve. The company’s Engineered Bar Products Division also benefited from positive momentum in the heavy equipment and energy sectors.

"Additionally, in what is typically a seasonally lower demand timeframe for our fabrication operations, the team achieved record quarterly shipments and improved earnings, a strong indicator that the nonresidential construction market is continuing a positive growth profile,” Millett said.

The first-quarter average selling price for the company's steel operations increased $63 to $743 per ton. SDI’s steel production utilization rate hit 95 percent in the first quarter, considerably higher than the 81 percent in the prior quarter and well above the industry average around 75 percent.

"The company believes that current and anticipated macroeconomic and market conditions are in place to benefit the domestic steel industry in the coming year," said Millett. "Although domestic automotive production may be coming off record levels, we believe 2017 North American automotive steel consumption will be steady, and that there will be additional growth in the construction sector, especially for larger, public-sector infrastructure projects.”


November 2017: 'Steady but Sloppy' Fittingly Sums 2017
More...
 
Pause
November 2017: Scrap First Steel Impact from Storms
More...
Fall 2017: Cutting & Sawing Equipment
More...
Summer 2017
More...
 
Pause
Advanced Controls on Braner Slitters
More...
AHVS Precision Leveler Features Flip-Top Design
More...
Formtek’s Tishken Slitter Increases Production Volume
More...
Red Bud System Handles High-Strength Steels
More...
Bradbury Launches Flat Trak CL Monitoring System
More...
Artus Knives Custom Designed
More...
 
Pause
Privacy Statement  |  Terms Of Use
Copyright by Metal Center News



Tuesday, December 12, 2017