SDI's Sales, Income Dip in Second Quarter
By Metal Center News Staff
on Jul 24, 2023
Steel Dynamics Inc., Fort Wayne, Ind., reported second-quarter net sales of $5.1 billion, down 18 percent compared with the same quarter of 2022. Net income totaled $812 million, up from the first quarter total of $637 million but a decline from the $1.2 billion posted in the second quarter of 2022.
“The team executed well and delivered a strong second quarter performance across our operating platforms,” said Mark D. Millett, chairman and CEO. “The sequential improvement in earnings was driven by significantly higher realized pricing from our steel operations.”
Second-quarter 2023 operating income from steel operations was $706 million, more than double the first-quarter sequential results, due to significant metal spread expansion across the platform as realized selling values more than offset moderately higher scrap costs. Steel order activity remained solid from the automotive, construction, industrial and energy sectors.
“We remain confident that market conditions are in place for domestic steel consumption to be solid,” said Millett. “Order entry activity continues to be strong across all of our businesses. We believe North American steel consumption will increase in the coming years, and that demand for lower-carbon emission, U.S.-produced steel products, coupled with lower imports, will support steel pricing. The continued onshoring of manufacturing businesses, combined with the expectation of significant fixed asset investment to be derived from public funding related to the U.S.”