SDI Predicts Robust Steel Market Dynamics in H2 2019

SEATTLE (Scrap Monster): Fort Wayne, Indiana-based Steel Dynamics, Inc. (SDI) reported financial results for second quarter of 2019.

The company reported net income of $0.87 per diluted share during Q2 ’19, as compared with $1.53 per diluted share in Q2 2018 and $0.91 per diluted share during the sequential quarter. The net sales totaled $2.8 billion during the quarter, said the company press release. The consolidated operating income and adjusted EBITDA totaled $285 million and $365 million respectively in second quarter 2019.

The company’s steel operations reported operating income of $295 million. The operating income from the company’s metals recycling operations dropped to $11 million. Meantime, the steel fabrication operations generated an operating income of $31 million.

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For the initial six-month period of 2019, SDI reported net income of $1.78 per diluted share on net sales of $5.6 billion. This compares with $2.49 per diluted share and $5.7 billion during the comparable period in 2018.

Commenting on the results, Mark D. Millett, President and Chief Executive Officer stated that the company succeeded in delivering a solid quarterly performance, despite challenging steel pricing environment. The company reported notable improvement in steel platform shipments despite weak buying sentiments. It foresees continued positive activity across most of the steel consuming sectors, Millet said.

In its outlook for the second half of 2019, SDI anticipates constructive North American steel market dynamics. The steel consumption is likely to see modest growth, it said. Furthermore, trade actions are likely to have positive impact in reducing unfairly traded imports of steel into the U.S.