Steel Dynamics, Inc. today announced first quarter 2017 financial results. The company reported first quarter 2017 net income of $201 million on net sales of $2.4 billion. Comparatively, prior year first quarter net income was $63 million on net sales of $1.7 billion. Sequential fourth quarter 2016 net income was $20 million.
In a statement, Mark D. Millett, SDI’s President and Chief Executive Officer, said the increase in earnings was “principally driven by our flat roll operations, as demand was strong and customer inventory levels continued to be positioned at historically low levels.”
The company also experienced increased shipments from its long product steel divisions, while steel demand from the automotive sector remained steady and construction continued to improve. Additionally, there was an overall general demand improvement in the Engineered Bar Products Division, supported by positive movement in the heavy equipment and energy sectors.
As for an outlook, Millett said, “The company believes that current and anticipated macroeconomic and market conditions are in place to benefit the domestic steel industry in the coming year. Although domestic automotive production may be coming off record levels, we believe 2017 North American automotive steel consumption will be steady, and that there will be additional growth in the construction sector, especially for larger, public sector infrastructure projects. Additionally, the energy sector has begun to strengthen.”