Oct. 25, 2017
 
Steel Dynamics Reports $6 Million Bump in Operating Income

Steel Dynamics Inc., Fort Wayne, Ind., saw net income drop 2.5 percent year over year to $153 million, while income from operations increased $6 million over the prior quarter to $271 million.

Net sales in the quarter totaled $2.4 billion, compared with $2.1 billion in the year-ago period, and trailing 12-month adjusted EBITDA was $1.4 billion.

President and CEO Mark Millett said he’s pleased with his company’s recent performance despite pressure from continued high levels of steel imports, which prevented domestic steel prices from keeping pace with raw material costs. “Despite reported low levels of steel service center inventory, we believe steel traders built inventory at the ports ahead of potential domestic trade actions, which resulted in an overhang position for flat-roll steel during recent months. This oversupply resulted in periods of weaker customer orders.”

Total shipments in the quarter totaled 2.5 million tons, compared with 2.2 million tons in third quarter 2016 and 2.4 million tons in second quarter 2017. Millett added that SDI’s sequential earnings increase was driven by improved engineered bar, structural and merchant steel shipments.

The company also reported strong underlying demand from the construction sector and stable demand from the energy sector. And while demand from the domestic automotive sector softened, Millett said SDI’s steel operations helped mitigate the impact by continuing to gain market share.

"Despite a somewhat noisy market environment related to continued high levels of steel imports, we remain optimistic that macroeconomic and market conditions are in place to benefit domestic steel consumption in 2018," Millett said. "Although U.S. automotive production has peaked, we believe North American automotive steel consumption will be steady, and that there will be continued additional growth in the energy and construction sectors, especially for larger, public sector infrastructure projects.”

Looking ahead to the fourth quarter, SDI is planning to complete a facility expansion and $29 million replacement and upgrade of two ladle furnace cranes at its Butler Flat Roll Division, as well as a $10 million upgrade of the hot strip mill at its Columbus Flat Roll Division.

“The planned upgrades require longer than typical outages, which will result in higher costs and lower shipments, reducing potential fourth quarter 2017 pretax earnings by an estimated $25 million,” Millett said.


October 2017: Millennial Need Not be a Dirty Word
More...
 
Pause
October 2017: Steel Industry Looks to Attract Next Generation of Skilled Employees
More...
Fall 2016: 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



Saturday, November 18, 2017