Steel Dynamics, Inc. today announced second quarter 2017 financial results. The company reported second quarter 2017 net income of $154 million, with net sales of $2.4 billion. Comparatively, prior year second quarter net income was $142 million, with net sales of $2.0 billion. Sequential first quarter 2017 net income was $201 million, with net sales of $2.4 billion.
Second quarter 2017 operating income attributable to the company's flat roll products decreased 22 percent when compared to the sequential first quarter. Operating income from long products decreased 24 percent as a result of an 8 percent decrease in shipments, most significantly from the company's Structural and Rail Division, despite record quarterly rail shipments. Structural and merchant steel volumes remain under pressure from excess domestic production capability, coupled with elevated import levels.
The company's steel production utilization rate was 91 percent in the second quarter 2017, compared to 95 percent in the sequential first quarter and compared to the estimated second quarter domestic industry utilization rate of 74 percent.
Second quarter 2017 operating income from the company's metals recycling operations was $20 million, compared to $21 million in the sequential first quarter. Higher average sales prices were offset by lower shipments, related in part to the company's sale of certain southeastern U.S. locations at the end of the first quarter 2017.
The company's fabrication operations recorded second quarter 2017 operating income of $20 million, compared to sequential first quarter results of $24 million. The platform achieved a second consecutive quarter of record shipments. However, metal spread compression based on higher average steel input costs more than offset the improved volume.