Steel Dynamics Inc. announced Tuesday third quarter 2014 net sales of $2.3 billion and net income of $91 million, or 38 cents per diluted share, which includes the negative impact of approximately 9 cents per diluted share related to acquisition costs, financing fees and the effect of purchase accounting adjustments for its Severstal Columbus LLC acquisition in mid-September. Excluding these charges, the company's third quarter 2014 earnings would have been 47 cents per diluted share.
"We are very pleased with our operational and financial performance," says CEO Mark Millett. "Our consolidated operating income increased 43 percent to $189 million for the third quarter 2014, as compared to the second quarter. During the third quarter, we achieved record volumes in fabrication and steel, even before including the results from our recent acquisition. Despite the continued elevated levels of steel imports into the US, the strength of underlying demand, coupled with our market diversification and customer focus supported our record shipments, and we remain optimistic heading toward the end of the year.”
Prior year third quarter net income was $57 million on net sales of $1.9 billion; and sequential second quarter 2014 net income was $72 million on net sales of $2.1 billion.
Year-to-date Sept. 30, 2014, net income was $202 million on net sales of $6.2 billion compared with net income of $135 million on net sales of $5.5 billion for the prior year period. Consolidated net sales increased 13 percent, primarily as a result of higher average steel pricing and improved shipments across the company's operating platforms, SDI says.
"Looking ahead, we remain optimistic," Millett said. "Despite recent broader global concerns, the U.S. economy is continuing to improve, inflation remains low and borrowing rates remain at historically attractive levels. We continue to be the beneficiaries of strong end markets, such as automotive, manufacturing, transportation and energy. We also believe growth in the construction market will continue as evidenced by the increased demand for our construction-related steel products.”