• Skip to main content

    Market Segment

    June 16, 2022

    SDI: Steel Fabrication Operations to Drive Best Q2 Results

    Written by David Schollaert

    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

    David Schollaert is deputy editor-in-chief for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. He can be contacted at david@steelmarketupdate.com or 724-720-1008.

    Read more from David Schollaert

    Latest in Market Segment

    Sheet market expects broad price stability and ‘hot’ HR demand

    Some domestic hot-rolled (HR) coil market participants say they expect prices remain stable through the end of 2026.  Asked why prices would hold and not slip, sources said they anticipate mills won’t suddenly have much more capacity for spot orders. They also noted that the annual summer doldrums haven’t sent demand into a precipitous decline. They contend that most in the steel industry expected […]