Metal Center News
Minimize
  
7-27-2011 News
Minimize

SDI’s Net Income Doubles in Second Quarter

Steel Dynamics Inc., Fort Wayne, Ind., reported net income of $99 million during the second quarter, a jump of more than 200 percent from the same period in 2010. The steelmaker reported net income of $49 million during the same period a year ago.

Net sales for the quarter totaled $2.1 billion, an increase of 31.3 percent from the same quarter in 2010. Net sales in the first quarter totaled $2.0 billion, though net income was slightly higher at $106 million.

"Quarter over quarter, operational earnings were essentially the same, although from different sources," said Keith Busse, chairman and CEO. "Operating income from our steel operations increased $21 million, but was offset by a decrease in our metals recycling and ferrous resources operations of $36 million.”

SDI’s second-quarter 2011 steel shipments totaled 1.5 million tons, 15 percent higher than the second quarter of 2010 and nearly the same as the first quarter of 2011. The average external steel selling price per ton shipped in the second quarter was $947, an increase of $57 per ton compared with the previous quarter and $118 per ton compared to the same quarter last year.

Flat-rolled division production of hot-band during the quarter was the highest ever for SDI. More than 750,000 tons of hot band were produced, supporting downstream galvanizing and painting operations.

“I would guess steel volume will be off a little because of the June snag in order entry, at least on flat-roll. We’re expecting steel production and shipments to sag somewhat in the third quarter. With service centers not having a lot of inventory, there will be some periods of unevenness in order entry, but I believe we’ll have a better fourth quarter,” Busse said.

Steel pricing has softened recently and may be down as much as $60 in the third quarter, Busse said, but he  expects a comparable bounce back in the fourth quarter.

So far, SDI has not seen a significant effect on the market from the planned activity of RG Steel, ThyssenKrupp’s Alabama facility or Severstal’s Mississippi operation. “We don’t see it as a downward pressure. It’s more talk than impact at the moment,” Busse said.

SDI continues to proceed cautiously in its plans to construct another flat-rolled mill, likely somewhere in the South, to service the pipe and tube market. “If you took the board’s temperature, it’s improving, becoming more positive on the project. It’s affordable, still in the billion dollar range, and it won’t come on line until 2014, which ought to be an entirely different economic climate. I think the board’s concern is more about where the nation is heading and what the barriers are to continued expansion of our economy,” Busse said.

"Looking ahead to the second half of 2011," he concluded, "we believe continued slow improvement in the U.S. economy is possible and anticipate continued, yet uneven, buying activity as service center inventory levels remain relatively low and consumption by such sectors as automotive, transportation, energy, industrial, agricultural and construction equipment remains steady to growing slightly. Barring any unforeseen changes in the economic climate, the third quarter should be fairly solid.”

  
From the Editor's Desk
Minimize
October 2014: It's Your Job to Help Fill the Skills Gap
More...
 
Pause
Business Practices and Technologies
Minimize
October 2014: Mixed Outlook for Global Metals Prices
More...
The Cutting Edge, a service center technology supplement to Metal Center News
More...
Summer 2014
More...
 
Pause
New Products
Minimize
Trumpf Expands Range on TruMark 5000 Series
More...
Koike Aronson Debuts New Plasma Cutter
More...
Miyachi Unitek's Sigma XY
More...
New TMC is Messer's Largest Cutting Machine
More...
Laserdyne 795 XLZ Designed for 3D Parts
More...
Mazak's STX Champion Cuts Thick Sheets
More...
 
Pause
Directories
Minimize
Metal Center News 2014 Directories: Print or Digital copies are available for $85 U.S. for each copy.
 

 
2014 Metal Distribution Directory  
(Not Published on This Web site)
Metal Center News' Spring Metal Distribution Directory is your on-line guide to Metal Producers, Equipment Manufacturers and Software companies.  



 
2014 Directory of Master Distributors
(Not Published on This Web site)
The Metal Center News Directory of Master Distributors—distributors who sell to other distributors—is an invaluable tool for service centers seeking new sources for special or hard-to-find products. Master distributors play an important role in the marketplace, giving service centers an alternative to buying in mill quantities and helping to remove redundant and excess inventories from the distribution channel.



 
2014 Directory of Toll Processors
(Not Published on This Web site)
Metal Center News' annual toll processing directory is a simple-to-use resource to help companies locate service providers that can meet their specific processing needs.


Privacy Statement  |  Terms Of Use
Copyright by Metal Center News



Monday, November 24, 2014