Steel Mills
SDI: Steel Fabrication Operations to Drive Best Q2 Results
Written by David Schollaert
June 16, 2022
Steel Dynamics Inc. (SDI) expects its best second-quarter earnings to date for the three-month period ended June 30. Record results are projected despite lower average flat-rolled steel selling prices.
The Fort Wayne, Ind.-based steelmaker expects earnings of $6.66-6.37 per diluted share in the second quarter, according to guidance figures released on Thursday, June 16.
That’s up from $5.71 per diluted share in the first quarter and nearly double $3.32 per diluted share in the second quarter of 2021, SDI said.
The exceptional gains come as lower profitability from SDI’s steelmaking operations in the second quarter will be offset by a strong showing from the company’s long steel products and metals recycling operations as well as a “meaningfully higher” showing from its steel fabrication operations division.
Nonresidential construction demand remains strong as evidenced by robust order activity driving a historically strong order backlog, SDI said. And that record forward pricing for its steel fabrication platform should continue into 2023.
Also weighing on second-quarter profits were costs related to the startup of and an estimated $76 million growth investment in SDI’s new flat-rolled steel mill in Sinton, Texas. The company forecasts they will be $0.28 per diluted share in the second quarter of this year, down from $0.30 per diluted share in the first quarter.
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
Read more from David SchollaertLatest in Steel Mills
Steel Summit 2024: Stelco CEO reflects on strategy, growth, and sale to Cleveland-Cliffs
In a candid fireside chat with SMU Senior Analyst/Editor David Schollert, Stelco’s CEO Alan Kestenbaum opened up about Stelco’s pending sale to Cliffs, his business strategy, outlook for the industry, and plans for the future. The chat took place on Tuesday, Aug. 24, at the 2024 SMU Steel Summit in Atlanta.
AISI: US steel shipments unchanged in July vs. June, down on-year
Domestic steel shipments remained nearly flat in July month over month but fell from a year earlier.
Media reports: Biden could block USS sale on national security concerns
President Joe Biden could block the $15-billion sale of U.S. Steel to Japan's Nippon Steel by citing national security concerns That’s according to reporting in the Washington Post and the Financial Times that was later picked up by the New York Times as well as in wire services.
USS threatens to cut ‘thousands’ of jobs, move HQ if Nippon sale blocked
U.S. Steel could slash thousands of jobs, shift away from integrated steelmaking, and move its headquarters out of Pittsburgh if its acquisition by Nippon Steel isn’t completed, the company’s top executive said. “We want elected leaders and other key decision makers to recognize the benefits of the deal was well as the unavoidable consequences if the deal fails,” company President and CEO David Burritt said in a statement on Wednesday.
CRU: SSAB to expand Mobile plate mill
SSAB plans to spend $12 million to boost production capacity at its electric-arc furnace (EAF) plate mill in Mobile, Ala. The Sweden-based steelmaker will do that by expanding the existing furnace there. Shot blast equipment will also be upgraded. The expanded capacity is expected to come online late next year. The mill currently has an […]