Steel Mills

SDI forecasts marked decline in Q2 earnings

June 17, 2024

Steel Dynamics Inc. guided to significantly reduced second-quarter earnings as its steel operations have taken a hit from lower prices.

SDI said on Monday it expects Q2’24 earnings to be $2.64 to $2.68 per diluted share. This is down markedly from earnings of $3.67/share in Q1’24 and $4.81/share in Q2’23.

The Fort Wayne, Ind.-based company said profitability at its steel operations will be “meaningfully lower” sequentially, as lower realized pricing offsets steady shipments.

“Underlying domestic steel demand remains intact, although steel buying hesitancy has resulted from a weakening scrap price environment,” the company said, noting positive demand from the automotive, non-residential construction, energy, and industrial sectors.

SDI’s metals recycling operations had stronger sequential shipments of both ferrous and nonferrous materials, which boosted Q2 shipments higher than in the previous quarter.

Higher shipments offset slightly lower pricing in SDI’s steel fabrication operations. As a result, the company expects the segment’s Q2 results to be level with Q1.

Commenting on the fabrication segment, SDI said: “The non-residential construction sector remains solid, as further evidenced by steel joist and deck order backlog volume that extends into the fourth quarter of 2024, with historically strong associated product pricing.”

It added that “the continued onshoring of manufacturing, coupled with the robust US infrastructure program and industrial buildouts, support strong demand in the coming years.”

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.