Steel Dynamics, Inc. today announced fourth quarter and annual 2017 financial results. The company reported fourth quarter 2017 net sales of $2.3 billion and net income of $305 million. Comparatively, prior year fourth quarter net sales were $1.9 billion, with net income of $20 million. Sequential third quarter 2017 net sales were $2.4 billion, with net income of $153 million.
Annual 2017 net income was $813 million, compared to 2016 annual net income of $382 million. Annual 2017 net sales were a record $9.5 billion compared to $7.8 billion in 2016. Each of the company's three operating platforms achieved higher average annual selling values and the steel and fabrication operating platforms also each achieved record shipments.
Fourth quarter 2017 operating income for the company's steel operations decreased 26 percent to $207 million sequentially, based on a four percent decline in shipments, product mix shift, and metal spread compression.
Fourth quarter 2017 operating income from the company's metals recycling operations was $22 million, compared to $21 million in the sequential third quarter. Despite decreased shipments and lower average quarterly ferrous pricing, ferrous metal spread remained steady and non-ferrous metal spread improved.
The company's fabrication operations fourth quarter 2017 operating income was $22 million, consistent with sequential third quarter results. The fabrication group achieved another quarter of record shipments and maintains a strong order backlog.
As for an outlook on 2018, Mark D. Millett, President and Chief Executive Officer, said "We remain confident that current and anticipated macroeconomic and market conditions are in place to benefit domestic steel consumption in 2018. Domestic steel inventory levels have moderated. World steel demand and pricing have structurally improved and domestic steel demand remains healthy. We believe North American automotive steel consumption will be steady, and we continue to gain momentum in that sector. We also believe that there will be continued additional growth in the construction and energy sectors. We believe the recent tax reform will also provide a stimulus for additional domestic fixed asset investment and growth. In combination with our own SDI expansion initiatives, we believe there are firm drivers for growth in 2018."