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

Op-Ed: Ternium CEO Máximo Vedoya wants a fair future forged in steel
After recently receiving an industry honor on behalf of Ternium, I had the opportunity to reflect and share my vision on the state and future of our industry.

Nippon eyeing new $4B U.S. Steel mill to sweeten deal: Report
Nippon Steel could build a new domestic U.S. Steel mill with a total investment of $4 billion.

Nucor cuts CSP by $20/ton, third straight drop
Nucor has lowered its consumer spot price by $20 per short ton, marking the third consecutive weekly decrease.

Nucor reports IT systems breach
Nucor said it temporarily and proactively halted some production operations at various locations.

Cliffs talks DOE funding, blast furnace relining schedule
The future of two projects supported in part by funding through the Department of Energy remains uncertain.