SDI Earnings from Steel Operations Dropped 19%

SEATTLE (Scrap Monster): Steel Dynamics, Inc. Announced financial results for third quarter 2019.

The company reported Q3 net income of $151 million or $0.69 per diluted share. This compared with the prior year third quarter earnings of $398 million or $1.69 per diluted share. The net sales recorded decline from $3.2 billion in Q3 last year to $2.5 billion in Q3 2019. Steel Dynamics had reported net income and sales of $194 billion and $2.8 billion in the sequential second quarter of 2019.

The consolidated operating income totalled $228 million and adjusted EBITDA totalled $315 million during the quarter. The company generated strong cash flow from operations of $444 million. Also, the liquidity touched a record high of $2.4 billion, the company press release said.

The Q3 operating income from the company’s steel operations were down sharply by 19% over the sequential quarter at $240 million, mainly on account of lower product pricing and reduced steel shipments. The metals recycling operations operating income recorded sequential drop from $11 million to $3 million. The steel fabrication operations’ operating income surged higher by 15% from Q2 this year to total $35 million.

The net income during the first nine months of the year ended September 30, 2019 was $550 million or $2.47 per diluted share. The net sales amounted to $8.1 billion. This compares with the net income and sales of $988 million and $8.9 billion during the corresponding nine-month period in 2018.