Steel Mills
SDI foresees earnings rise on strength in flat rolled ops
Written by Laura Miller
March 15, 2024
Strength in its flat-rolled steel operations is pushing Steel Dynamics Inc. (SDI) to guide to higher sequential earnings in the current quarter.
The Fort Wayne, Ind.-based steelmaker said on Friday it expects first-quarter 2024 earnings to be between $3.51 and $3.55 per diluted share. Although this would be down slightly from earnings of $3.70 per diluted share in Q1’23, it would be higher than the $2.61 per diluted share posted in Q4’23. In Q4’23, SDI posted net earnings of $424.3 million on sales of over $4.2 billion.
Higher shipments and earnings are boosting profitability in its steel operations, the company said, noting improved performance at its newest flat-rolled steel mill in Sinton, Texas. The automotive, non-residential construction, energy, and industrial markets are driving demand, SDI said.
SDI’s metals recycling operations are seeing “substantially stronger realized product pricing” and higher ferrous and non-ferrous volumes compared to the prior quarter.
While results from the steel fabrication segment will be historically strong, SDI said earnings will be down sequentially due to seasonally lower shipments and a squeeze in metal spreads.
“The non-residential construction sector remains solid, as further evidenced by steel joist and deck order backlog volume that extends into the third quarter of 2024, with historically strong associated product pricing,” SDI commented in its earnings guidance statement.
“In addition, the continued onshoring of manufacturing, coupled with the robust US infrastructure program and industrial buildouts, support strong demand in the coming years,” it added.
SDI will release its full Q1’24 earnings results after the market closes on Tuesday, Apr. 23.
Laura Miller
Read more from Laura MillerLatest in Steel Mills
SDI earnings slip in Q2 as trade volatility hits customer orders
SDI profits slipped in second quarter amid trade policy volatility.
Cliffs puts ‘for sale’ signs up after another big quarterly loss
Cleveland-Cliffs lost more than $400 million for the third consecutive quarter but predicted results would improve in the second half of the year. And shares of the Cleveland-based steelmaker surged after company executives said during its Q2 earnings call on Monday that they could make billions by courting foreign investors or selling assets.
Algoma sees narrower Q2 loss but feels tariff sting
Algoma Steel expects a narrower sequential loss in the second quarter, but the company continues to be impacted by the US tariff situation.
Nippon plans to double steel output at USS operations: Report
Now that it has acquired U.S. Steel, Nippon Steel is planning a significant expansion of its US operations, including the construction of a new mill and more than doubling its steel output.
Algoma fires up EAF steelmaking with first arc
Algoma Steel reached a milestone in its transformation from blast furnace to electric arc furnace (EAF) steelmaking, with its Unit One EAF achieving its first steel production this week.