Steel Mills

SDI Expects Higher Profits in Q3

Written by Sandy Williams


Steel Dynamics Inc. expects profits from third quarter steel operations to surpass second quarter and year over year results. In their third quarter guidance, SDI indicated earnings of $0.34 to $0.38 per diluted share that will include before tax charges of $34 million related to the acquisition and financing of Severstal Columbus.

Shipments and metal spreads are improved across all steel platforms despite higher import levels. Key markets for SDI are automotive, manufacturing, energy and construction, all which are continuing to improve.

Demand for structural steel and fabricated steel joist and decking products indicates growth in nonresidential construction. Fabricated steel shows improved volume and margin.

Metals recycling results are expected to be flat or lower compared to second quarter due to lower nonferrous metal spreads.

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