Steel Mills

SDI foresees earnings rise on strength in flat rolled ops

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

Laura Miller is a reporter and editor for Steel Market Update. She has held a variety of positions within the steel industry since 2007, including reporting and editing for Steel Business Briefing/Platts, the Association for Iron and Steel Technology, and Kallanish Commodities, as well as marketing for what was then known as ThyssenKrupp Steel USA (now AM/NS Calvert). After a five-year hiatus working across other industries, she returned to steel in 2021 and has covered the flat rolled, tubular, and trade areas of the industry. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania. She can be reached at laura@steelmarketupdate.com or 724-759-7869.