FORT
WAYNE, Ind., June 17,
2024 /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS:
STLD) today provided second quarter 2024 earnings guidance in the
range of $2.64 to $2.68 per diluted share. Comparatively, the
company's sequential first quarter 2024 earnings were $3.67 per diluted share, and prior year second
quarter earnings were $4.81 per
diluted share.
Second quarter 2024 profitability from the company's steel
operations are expected to be meaningfully lower than sequential
first quarter results, based on lower realized pricing offsetting
steady shipments. Underlying domestic steel demand remains intact
although steel buying hesitancy has resulted from a weakening scrap
price environment. The automotive, non-residential
construction, energy, and industrial sectors continue to lead
demand.
Second quarter 2024 earnings from the company's metals recycling
operations are expected to be higher than sequential first quarter
results, based on stronger volumes in both ferrous and nonferrous
materials.
Second quarter 2024 earnings from the company's steel
fabrication operations are expected to be in line with sequential
first quarter results, based on increased shipments offsetting
incrementally lower realized pricing. The non-residential
construction sector remains solid, as further evidenced by steel
joist and deck order backlog volume that extends into the fourth
quarter of 2024, with historically strong associated product
pricing. In addition, the continued onshoring of manufacturing,
coupled with the robust U.S. infrastructure program and industrial
buildouts, support strong demand in the coming years.
Based on continued confidence in the company's earnings outlook
and cash flow generation, the company repurchased $247 million, or 1.1 percent, of its common stock
during the second quarter through June 10,
2024.
The company plans to release its second quarter 2024 earnings
after the markets close on Wednesday, July
17, 2024, and will hold a conference call the following day
at 11:00 a.m. Eastern Daylight Time
to review the company's results.
About Steel Dynamics, Inc.
Steel Dynamics is one of
the largest domestic steel producers and metals recyclers in
North America, based on estimated
annual steelmaking and metals recycling capability, with facilities
located throughout the United
States, and in Mexico.
Steel Dynamics produces steel products, including hot roll, cold
roll, and coated sheet steel, structural steel beams and shapes,
rail, engineered special-bar-quality steel, cold finished steel,
merchant bar products, specialty steel sections, and steel joists
and deck. In addition, the company produces liquid pig iron and
processes and sells ferrous and nonferrous scrap.
Forward-Looking Statements
This report contains some
predictive statements about future events, including statements
related to conditions in domestic or global economies, conditions
in steel, aluminum, and recycled metals market places, Steel
Dynamics' revenues, costs of purchased materials, future
profitability and earnings, and the operation of new, existing or
planned facilities. These statements, which we generally precede or
accompany by such typical conditional words as "anticipate",
"intend", "believe", "estimate", "plan", "seek", "project", or
"expect", or by the words "may", "will", or "should", are intended
to be made as "forward-looking", subject to many risks and
uncertainties, within the safe harbor protections of the Private
Securities Litigation Reform Act of 1995. These statements speak
only as of this date and are based upon information and
assumptions, which we consider reasonable as of this date,
concerning our businesses and the environments in which they
operate. Such predictive statements are not guarantees of future
performance, and we undertake no duty to update or revise any such
statements. Some factors that could cause such forward-looking
statements to turn out differently than anticipated include: (1)
domestic and global economic factors; (2) global steelmaking
overcapacity and imports of steel, together with increased scrap
prices; (3) pandemics, epidemics, widespread illness or other
health issues; (4) the cyclical nature of the steel industry and
the industries we serve; (5) volatility and major fluctuations in
prices and availability of scrap metal, scrap substitutes and
supplies, and our potential inability to pass higher costs on to
our customers; (6) cost and availability of electricity, natural
gas, oil, and other energy resources are subject to volatile market
conditions; (7) increased environmental, greenhouse gas emissions
and sustainability considerations from our customers or related
regulations; (8) compliance with and changes in environmental and
remediation requirements; (9) significant price and other forms of
competition from other steel and aluminum producers, scrap
processors and alternative materials; (10) availability of an
adequate source of supply of scrap for our metals recycling
operations; (11) cybersecurity threats and risks to the security of
our sensitive data and information technology; (12) the
implementation of our growth strategy; (13) litigation and legal
compliance; (14) unexpected equipment downtime or shutdowns; (15)
governmental agencies may refuse to grant or renew some of our
licenses and permits; (16) our senior unsecured credit facility
contains, and any future financing agreements may contain,
restrictive covenants that may limit our flexibility; and (17) the
impacts of impairment charges.
More specifically, we refer you to our more detailed explanation
of these and other factors and risks that may cause such predictive
statements to turn out differently, as set forth in our most recent
Annual Report on Form 10-K under the headings Special Note
Regarding Forward-Looking Statements and Risk Factors, in our
Quarterly Reports on Form 10-Q, or in other reports which we file
with the Securities and Exchange Commission. These reports are
available publicly on the Securities and Exchange Commission
website, www.sec.gov, and on our website, www.steeldynamics.com
under "Investors – SEC Filings."
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SOURCE Steel Dynamics, Inc.