Steel Mills
Strong Second Quarter for Steel Dynamics
Written by Sandy Williams
June 16, 2018
Steel Dynamics is expecting second-quarter profitability to be “meaningfully” higher than the first quarter due to increased steel shipments and metal spread expansion. Steel pricing is outpacing scrap costs in Q2. Profitability has improved across all of SDI’s steel platform, but especially in sheet operations.
The metals recycling division is expected to be level with first-quarter results as higher shipments are offset by ferrous and non-ferrous metal spread compression.
Steel fabrication earnings are expected to decrease compared to the first quarter due to rising steel input prices offsetting higher average sales price and shipments.
“Based on strong steel demand fundamentals and customer optimism, the company believes steel consumption and market dynamics will remain strong throughout the year,” said Steel Dynamics. “Steel fabrication orders continue to be strong and backlogs lengthening.”
Steel Dynamics provides earnings guidance in the range of $1.46 to $1.50 per diluted share, compared to prior-year second quarter earnings of $0.63 per diluted share and sequential first-quarter 2018 earnings of $0.96 per diluted share.
Sandy Williams
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