SDI Reports Q1 Sales of $2.8 Billion
By Metal Center News Staff
on Apr 24, 2019
Steel Dynamics, Inc., Fort Wayne, Ind., reported first-quarter net sales of $2.8 billion, a 7.7 percent increase compared with the same quarter in 2018. Net income declined 10.5 percent to $204 million.
"The team delivered a strong first-quarter performance in a somewhat challenging flat-roll steel pricing environment," said Mark D. Millett, president and CEO. "A downward trend in flat-roll steel prices began in the second half of 2018, and continued through mid-first quarter, reaching an inflection point in February. The teams were able to increase shipments and offset some of the margin compression, resulting in first-quarter 2019 consolidated operating income of $292 million and adjusted EBITDA of $382 million.
“The continued stabilization and improvement in flat roll steel prices are having a positive impact, resulting in increased flat roll order activity and solid order backlogs. We are seeing continued strength in the automotive, energy and industrial sectors, and as evidenced by strong steel fabrication backlogs, strength in non-residential construction,” he said.
First-quarter 2019 operating income for the company's steel operations was $312 million, or 22 percent lower than sequential fourth quarter 2018 results. The decline in earnings resulted from metal spread compression driven by lower flat-roll steel pricing, which more than offset increased overall steel shipments. The first-quarter average product selling price for the company's steel operations decreased $38 to $902 per ton.
"We believe the market dynamics are in place for domestic steel consumption to continue to increase this year," said Millett. "Based on domestic steel demand fundamentals and continued customer optimism, we believe North American steel consumption will experience steady growth.”