Steel Dynamics, Inc. expects to report record earnings again in Q3

Wednesday, 15 September 2021 20:33:26 (GMT+3)   |   San Diego
       

Steel Dynamics, Inc. today provided third quarter 2021 earnings guidance in the range of $4.78 to $4.82 per diluted share, representing record quarterly performance. Comparatively, the company's sequential second quarter 2021 earnings were $3.32 per diluted share. Prior year third quarter earnings were $0.47 per diluted share.

In a statement, the company said third quarter 2021 profitability from its steel operations is expected to be meaningfully higher than second quarter results setting a new quarterly record, driven by strong steel demand and significant metal spread expansion across the entire platform, and most pronounced within the flat roll steel operations.

Third quarter 2021 steel shipments are expected to be strong across the company's steel portfolio, SDI said, adding that US domestic steel demand remains strong, with the automotive, construction, and industrial sectors continuing to lead the momentum. Order entry continues to be robust as strong demand, coupled with continuing low flat roll steel inventories underpin elevated steel selling values, the company said. SDI said it believes this momentum will continue, resulting in even stronger fourth quarter results.     

Third quarter earnings from the company's metals recycling operations are expected to be aligned with sequential second quarter results, based on higher sequential ferrous metal margin offsetting lower volume, SDI said. As many domestic steel mills are taking maintenance outages in the fourth quarter of 2021, the company anticipates ferrous scrap demand to moderate in line with reduced steel production. 

The company said third quarter 2021 earnings from the company's steel fabrication operations are expected to be more than two and one-half times higher than sequential strong second quarter results, as higher prices and expected record quarterly shipments more than offset higher steel input costs. The non-residential construction sector remains strong as evidenced by robust and increasing order activity, resulting in another record order backlog and record forward-pricing for the company's steel fabrication platform, SDI said. The company anticipates this momentum to continue through the remainder of this year and into 2022 based on these dynamics.


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