Steel Dynamics, Inc. today provided fourth quarter 2021 earnings guidance in the range of $5.46 to $5.50 per diluted share, representing record quarterly performance. Comparatively, the company's sequential third quarter 2021 earnings were $4.85 per diluted share. Prior year fourth quarter earnings were $0.89 per diluted share.
In a press release, the company said fourth quarter 2021 profitability from the company's steel operations is expected to be higher than third quarter results setting a new quarterly record, driven by strong underlying steel demand and metal spread expansion across the platform, more than offsetting seasonally lower steel shipments. Domestic steel demand remains strong, with the automotive, construction, and industrial sectors continuing to lead the momentum, SDI said.
Fourth quarter 2021 earnings from the company's metals recycling operations are expected to be aligned with sequential third quarter results, based on improved metal margins despite modestly lower selling values and offsetting lower shipments. Many domestic steel mills had planned maintenance outages throughout the fourth quarter 2021, which lowered ferrous scrap demand, SDI said.
Fourth quarter 2021 earnings from the company's steel fabrication operations are expected to be more than two and one-half times higher than sequential record third quarter results, as significantly higher selling values and near-record shipments, meaningfully more than offset higher steel input costs. The non-residential construction sector remains strong as evidenced by robust order activity, resulting in another record order backlog and record forward-pricing for the company's steel fabrication platform, SDI said, adding that the company anticipates this momentum to continue through 2022 based on these dynamics.