Steel Dynamics, Inc. (SDI) provided third quarter 2023 earnings guidance in the range of $3.46 to $3.50 per diluted share. Comparatively, the company's sequential second quarter 2023 earnings were $4.81 per diluted share, and prior year third quarter earnings were $5.03 per diluted share.
In a press release, the company said third quarter 2023 profitability from its steel operations is expected to be significantly lower than sequential second quarter results, based on metal spread contraction as lower realized flat rolled steel pricing more than offset lower scrap costs. Steel shipments are expected to be comparable to sequential second quarter volume, excluding lost volume related to Sinton's unplanned July outage, SDI said, adding that steel order activity remains solid.
Third quarter 2023 earnings from the company's metals recycling operations are expected to be lower compared to sequential second quarter results, based on lower volume and metal spread compression as pricing declined throughout the quarter, SDI said.
Third quarter 2023 earnings from the company's steel fabrication operations are expected to be lower compared to sequential second results, the company said, based on lower shipments and metal spread compression as realized selling values declined and steel input costs increased in the quarter.