Steel Dynamics Declared Guidance for Q3 2023 Earnings

SEATTLE (Scrap Monster): Fort Wayne, Indiana-headquartered Steel Dynamics, Inc. (SDI) announced guidance for third quarter 2023 earnings.

The quarterly earnings are likely to take a hit during the quarter. The company expects the quarterly earnings to range between $3.46 and $3.50 per diluted share during the third quarter, said the company press release. This compares with earnings of $4.81 per diluted share during the sequential second quarter 2023 and $5.03 per diluted share during the corresponding third quarter in 2022.

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The profitability from SDI’s steel operations in Q3 is expected to be significantly lower than the prior quarter. This is mainly due to contraction in metal spread on account of lower realized flat rolled steel pricing despite lower scrap costs. Although steel order activity continues to remain solid, the total steel shipments are unlikely to record any notable improvement over the previous quarter.

Meantime, the company anticipates lower earnings from metals recycling operations, driven by lower volumes and compression in metal spread. The earnings from steel fabrication operations too are likely to record decline in Q3 this year.

Through August this year, SDI has purchased $920 million of its common stock and has made cash dividend payment of $202 million to its shareholders.