Fort Wayne, Indiana-based steelmaker and metals recycling company Steel Dynamics Inc. (SDI) saw net income rise on a year-on-year basis in Q2, but earnings narrowed from the previous quarter. Q2 2011 net income was $99 million on net sales of $2.1 billion. By comparison, Q1 2011 net income was $106 million on lower sales of $2 billion. In Q2 2010, net income was $49 million on net sales of $1.6 billion.
SDI's Chairman and CEO Keith Busse attributed the decline to the company's metals recycling sector: "Operating income from our steel operations increased $21 million but was offset by a decrease in our metals recycling and ferrous resources operations of $36 million. Operating performance of our steel operations improved in the second quarter, resulting in operating income of $217 million, or $153 per ton shipped, a 62 percent increase versus the same quarter last year and an 11 percent increase compared to the first quarter of 2011."
SDI's metals recycling business, OmniSource, achieved operating income of $18 million in Q2 2011--a decrease of $7 million compared to Q2 2010, and a significant $31 million decline compared to the previous quarter. The decline in income comes despite a 15 percent year-on-year, and a 2 percent quarter-over-quarter, increase in ferrous scrap shipments in Q2.