Steel Mills

SDI Q4'23 profit slips, CEO sees strong '24 ahead

January 23, 2024

Steel Dynamics Inc.

Fourth quarter ended Dec. 31	2023	2022	% Change
Net sales	$4,233.4	$4,826.3	-12.3%
Net earnings (loss)	$424.3	$634.9	-33.2%
Per diluted share	$2.61	$3.61	-27.7%
Full year ended Dec. 31
Net sales	$18,795.3	$22,260.8	-15.6%
Net earnings (loss)	$2,450.9	$3,862.7	-36.5%
Per diluted share	$14.64	$20.92	-30.0%

(in millions of dollars except per share)

Steel Dynamics Inc. (SDI) reported lower fourth-quarter 2023 earnings on Tuesday but predicted good times ahead in 2024.

The Fort Wayne, Ind.-based steelmaker posted a Q4’23 profit of $424.3 million, down 33.2% from a profit of $634.9 million in Q4’22 on sales that fell 12.3% to $4.2 billion. (See table above.)

The dip came despite increased shipments from SDI’s flat-rolled steel mills in Butler, Ind.; Columbus, Miss.; and Sinton, Texas. Those mills shipped 1.84 million tons in Q4’23, up 4.3% from 1.76 million tons in Q4’22, according to data released with earnings figures.

But prices were lower. SDI reported average steel selling prices of $1,090 per ton in Q4’23, down 3% from $1,124 in Q3’22.

Outlook

SDI co-founder, chairman, and CEO Mark Millett predicted that demand would remain firm in 2024.

“Steel pricing has firmed, and customer order entry activity continues to be solid across our steel operations,” he said in a statement.

“In addition, we believe demand for lower-carbon emission, US-produced steel products will also support future domestic steel pricing,” Millett added.

Domestic steelmakers should also continue to benefit from “onshoring” as well as from big projects underpinned by government infrastructure spending and funding from the Inflation Reduction Act (IRA), he said.

Turning to operations, Millett said two paint lines and two galvanizing lines with Galvalume capability were expected to be commissioned in the first quarter.

The company in addition remains on track to commission a new, flat-rolled aluminum mill in mid-2025, he said.

Michael Cowden

Michael Cowden is editor-in-chief for Steel Market Update. Cowden has covered the steel industry since 2007. He specializes in flat-rolled steel but has also reported on steel long products, steel pipe and tube, and aluminum. Before joining SMU, Cowden held reporting jobs at Fastmarkets AMM in Chicago, the Associated Press in Pittsburgh, and the Cambodia Daily in Phnom Penh. He has also worked as a copy editor and in marketing at the University of Chicago Press. Cowden has a BA in English from the University of Chicago and an MSJ journalism from Northwestern University’s Medill School of Journalism. Contact him at michael@steelmarketupdate.com or 724-759-7872.