Steel Dynamics, Inc. announced Tuesday fourth quarter net income of $55 million, or $0.24 per diluted share, on net sales of $1.9 billion. By comparison, prior year fourth quarter net income was $61 million, or $0.27 per diluted share, on net sales of $1.7 billion, and sequential third quarter 2013 net income was $57 million, or $0.25 per diluted share, on net sales of $1.9 billion. Full-year 2013 net income was $189 million, or $0.83 per diluted share, on net sales of $ 7.4 billion. By comparison, fiscal year 2012 net income was $164 million, or $0.73 per diluted share, on net sales of $7.3 billion.
"Excluding the impact from non-cash unrealized hedging, 2013 full-year operating income for our metals recycling operations was fairly flat, as improved operating costs offset lower shipments," said Chief Executive Officer, Mark D. Millett. "During the fourth quarter, operating income for our metals recycling operations improved slightly, when compared to the third quarter of this year, with improved ferrous metal margins offsetting lower volume and decreased nonferrous profitability. The ongoing overcapacity of recycled shredding locations throughout the United States, especially in the Southeast, continues to constrain profitability and remains a broad industry challenge."
The company's annual 2013 steel mill production utilization rate was 88 percent, a six percentage point increase over 2012, with increases from the Structural and Rail and Flat Roll divisions. Notably the Structural and Rail Division operated at an annual rate of 68 percent for 2013, and for the second half of the year operated at a rate of 71 percent, which is significantly higher than any time since the precipitous decline in the nonresidential construction markets at the end of 2008.
"We are optimistic entering 2014," said Millett. "The broader US economy continues to improve. We believe the non-service sector portion of domestic GDP has the ability to grow at a higher rate than overall GDP, driven by strengthened asset values, domestic energy investment and increased infrastructure spending. Steel consumption would benefit from a recovery in the non-service sector of the US economy. Among others, these sectors include heavy steel consuming automotive, machinery, heavy equipment and construction industries. We believe our low-cost operations and preferred customer service, combined with the strength of our exceptional employees, uniquely positions us to capitalize on the opportunities ahead."