Steel Dynamics, Inc. provided fourth quarter 2023 earnings guidance in the range of $2.60 to $2.64 per diluted share. Comparatively, the company's third quarter 2023 earnings were $3.47 per diluted share and prior year fourth quarter earnings were $3.61 per diluted share.
In a press release, the company said fourth quarter 2023 profitability from the company's steel operations is expected to be lower than sequential third quarter results, based on steady shipments and metal spread contraction as lower realized flat rolled steel pricing more than offset lower scrap costs. Steel order activity remains solid as evidenced by extended order lead times and recent pricing increases heading into the first quarter of 2024, SDI said.
Fourth quarter 2023 earnings from the company's metals recycling operations are expected to be comparable to sequential third quarter results, based on pricing related metal spread expansion more than offsetting lower volume, as demand from domestic steel mills declined due to maintenance outages, the company said.
Fourth quarter 2023 earnings from the company's steel fabrication operations are expected to be lower compared to sequential third results, based on lower shipments and metal spread compression as realized selling values declined and steel input costs increased in the quarter, SDI said, adding that steel joist and deck order activity has improved during the fourth quarter, when compared to the sequential third quarter and pricing has stabilized.