Steel Mills
SDI: Steel Fabrication Operations to Drive Best Q2 Results
Written by David Schollaert
June 16, 2022
Steel Dynamics Inc. (SDI) expects its best second-quarter earnings to date for the three-month period ended June 30. Record results are projected despite lower average flat-rolled steel selling prices.
The Fort Wayne, Ind.-based steelmaker expects earnings of $6.66-6.37 per diluted share in the second quarter, according to guidance figures released on Thursday, June 16.
That’s up from $5.71 per diluted share in the first quarter and nearly double $3.32 per diluted share in the second quarter of 2021, SDI said.
The exceptional gains come as lower profitability from SDI’s steelmaking operations in the second quarter will be offset by a strong showing from the company’s long steel products and metals recycling operations as well as a “meaningfully higher” showing from its steel fabrication operations division.
Nonresidential construction demand remains strong as evidenced by robust order activity driving a historically strong order backlog, SDI said. And that record forward pricing for its steel fabrication platform should continue into 2023.
Also weighing on second-quarter profits were costs related to the startup of and an estimated $76 million growth investment in SDI’s new flat-rolled steel mill in Sinton, Texas. The company forecasts they will be $0.28 per diluted share in the second quarter of this year, down from $0.30 per diluted share in the first quarter.
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
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