Steel Dynamics Announced Earnings Guidance for First Quarter 2022

SEATTLE (Scrap Monster): Fort Wayne, Indiana-headquartered Steel Dynamics Inc. (SDI) provided earnings guidance for the initial quarter of 2022.

The company provided earnings guidance in the range of $5.55 to $5.59 per diluted share for the quarter. It expects the Q1 2022 adjusted earnings to be in the range of $5.85 to $5.89 per diluted share. This is excluding the impact from costs associated with the startup of the company’s Sinton Texas Flat Roll Steel Mill growth investment.

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This compares with sequential fourth quarter 2021 earnings of $5.49 per diluted share and adjusted earnings of $5.78 per diluted share and prior year first quarter earnings of $2.03 per diluted share and adjusted earnings of $2.10 per diluted share.

The profitability from steel operations is expected to be significantly lower than record Q4 2021 results, mainly driven by lower earnings from the company’s flat roll steel operations. The average expected flat roll pricing is expected to fall by more than 10%.

SDI expects earnings from the company’s metals recycling operations to be in line with sequential fourth quarter results, on account of improved metal margins, despite modestly lower volumes. The significantly higher selling values and strong shipments will likely double the earnings from company’s steel fabrication operations, in comparison with the sequential quarter.

The company expects the momentum to persist throughout the year.