Fort Wayne, Indiana-based steelmaker and steel recycler Steel Dynamics (SDI) reported Tuesday that Q4 net income totaled $30 million, compared to $8 million in Q4 2010, but down from $43 million in Q3 2011. For the full year 2011, net income climbed 98 percent to $278 million from $141 million in 2010.
Consecutive quarterly operating profit fell in Q4 as a result of compressed flat rolled margins and a three week maintenance shutdown of the company's Iron Dynamics facility. Earning from flat rolled operations declined 26 percent, as lower selling prices in the first half of the quarter were not matched with corresponding declines in the cost of raw materials, resulting in margin compression. However, beginning mid-quarter, increases in both order entry and pricing should benefit the first quarter of 2012.
Metals recycling volumes decreased when compared to Q3 2011, and operating income for OmniSource, SDI's metals recycling segment, was $16 million in the fourth quarter, an increase of $7 million in comparison to prior year, and an increase of $4 million compared to the third quarter of 2011.