Steel Dynamics, Inc. today announced second quarter 2022 financial results. The company reported record second quarter 2022 net sales of $6.2 billion and record net income of $1.2 billion, or $6.44 per diluted share.
Comparatively, the company's sequential first quarter 2022 earnings were $5.71 per diluted share. Prior year second quarter earnings were $3.32 per diluted share.
Mark D. Millett, Chairman, President, and CEO, commented, “Despite softening hot roll coil steel pricing, we achieved record quarterly steel shipments of 3.1 million tons based on solid steel demand, led by the automotive, construction, and industrial sectors, with energy continuing to improve”
In a press release, the company said second quarter 2022 operating income for the company's steel operations remained historically strong at $1.1 billion. The incremental decline in earnings resulted from metal spread compression within the company's flat roll steel operations, as lower average flat roll steel pricing more than offset higher flat roll steel shipments, SDI said.
Demand for the company's long product steel also continues to be strong, SDI said, supporting increased average realized pricing and shipments. The second quarter 2022 average external product selling price for the company's steel operations decreased $22 sequentially to $1,539 per ton. The average ferrous scrap cost per ton melted at the company's steel mills increased $64 sequentially to $538 per ton.
Second quarter operating income from the company's metals recycling operations increased to $58 million, above first quarter sequential results of $48 million, based on strong demand supporting increased pricing and related metal spread, SDI said. Solid demand for ferrous scrap resulted in a 7 percent increase in second quarter 2022 shipments, compared to first quarter sequential results.
Steel Dynamics said its steel fabrication operations reported another record operating income of $599 million in the second quarter 2022, substantially above sequential first quarter results, as significantly higher selling values and strong shipments more than offset marginally higher steel input costs. The non-residential construction sector remains strong, resulting in a near-record order backlog and higher forward-pricing for the company's steel fabrication platform, SDI said, adding that it anticipates this momentum to continue into 2023 based on these dynamics.
As for an outlook, Millett said, “Customer order entry activity continues to be healthy across all of our businesses, conflicting with the more pessimistic emotion in the marketplace. Despite softening flat roll steel pricing, our steel order activity remains solid from the automotive, construction, and industrial sectors, with energy continuing to improve. Our steel fabrication operations order backlog remains at near-record volumes and forward pricing levels. This combined with continued healthy order activity and broad customer optimism, supports strong overall demand dynamics for the construction industry.”