Fort Wayne, Indiana-based Steel Dynamics Inc. (SDI) announced third quarter 2022 net income of $914 million, or $5.03 per diluted share. That’s up from $4.85 per share a year ago, compared to $6.44 per share last quarter.
Mark D. Millett, Chairman, President and CEO of SDI, said: “These results continue to demonstrate the power of our highly diversified value-added circular manufacturing model. This is due to the declining sales value of realized flat rolled steel, almost 15% in the quarter.”
Despite widespread economic concerns centered around inflation and rising interest rates, Millett said demand for SDI’s steel products remains strong. “A record quarterly steel shipment of 3.2 million tonnes was achieved as a result of steady steel demand led by the construction industry and complemented by the automotive, industrial and energy sectors.”
According to SDI, Q3 2022 operating income from the Metals Recycling business will continue to decline significantly to $10 million in the third quarter of 2022 as a result of continued declines in ferrous and non-ferrous scrap prices and volumes. It happened.”
A scrap-fed electric arc furnace (EAF) steelmaker said its ‘realized average steel scrap price’ fell nearly 30% during the third quarter. SDI said, “We expect scrap prices to remain stable for the rest of the year.”
The SDI cites “compression in metal spreads” in the steel business’ third-quarter 2022 operating profit, down more than 50% compared to a year ago, “despite record volumes”. $658 million.
Millett said: In contrast, our steel manufacturing business posted new record revenues of $677 million based on higher selling prices, lower steel input costs and a continued stable construction demand environment. accomplished the quarter. “
Looking ahead, the CEO commented: Order activity and order backlog remain strong despite falling flat rolled steel prices. North American steel consumption remains stable, and we believe lower demand for low-carbon US steel products and lower imports will support steel prices. “
Commenting on SDI’s newest factory, Millet said: Product surface quality is excellent, grade development and dimensional tolerances exceed our expectations. The Sinton team said in October he was running at 65% speed, and in a few days he had over 80% speed, and that he will achieve at least 80% utilization for the full year of 2023. confirms our expectations. “
Millett also provided an update on SDI’s aluminum commitments, commenting:
he continues. So far, this has been achieved primarily in the carbon steel industry, although many of our carbon flat rolled steel customers are also consumers and processors of aluminum flat rolled products. In addition to the automotive and industrial sectors, we are pleased to further diversify our end markets with plans to supply the counter-cyclical sustainable beverage can industry with aluminum flat roll products with high recycled content. “
Millett concludes: Our planned investment in a new state-of-the-art low-carbon aluminum flat rolling mill and associated recycling aluminum slab center will continue our strategic growth, aligning with our core steel manufacturing and recycling platform and expanding our reach to many of our existing customers. Bring profit. We provide future value creation. We are well positioned for sustainable long-term growth. “
