Steel Dynamics (SDI) is expecting stronger earnings for the second quarter of 2023 vs. the previous quarter, but lower than the year-earlier period.
The Fort Wayne, Ind.-based steelmaker released Q2 earnings guidance on June 16 in the range of $4.78 to $4.82 per diluted share. This compares with Q1’s $3.70 per diluted share and prior-year Q2 earnings of $6.44 per diluted share.
SDI saiid it expects its Sinton, Texas, mill to be Ebitda positive for Q2, as it continues to ramp up operations. Additionally, the company reports that its steel fabrication operations results are expected to be “historically very strong,” but lower than Q1 results.
The company said steel order activity remains solid from the automotive, construction, industrial, and energy sectors.
Q2 metal margins are anticipated to be lower than Q1’s near-record results, SDI said. Product pricing is seen remaining strong, but lower than sequential Q1 performance in conjunction with higher material costs. SDI sees a strong order backlog for its fabrication platform, and a high demand for its long products that supply the non-residential construction sector.
By Becca Moczygemba, firstname.lastname@example.org
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