Steel Dynamics Q3 Profits Dipped on Lower Steel Prices

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

The company reported net income of $577 million, or $3.47 per diluted share during the quarter. This compares with prior year third quarter net income of $914 million, or $5.03 per diluted share and sequential second quarter 2023 net income of $812 million, or $4.81 per diluted share. The net sales for the quarter stood at $4.6 billion.

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The steel operations of the company generated operating income of $474 million, representing over one-third decline over the sequential quarter. The selling price of products from SDI’s steel operations averaged at $1,191 per ton. The ferrous scrap cost per ton melted at the company’s steel mills averaged at $405 per ton.

The Q3 operating income from metals recycling operations recorded notable decline by 54% to $19 million. The outages at steel mills on account of maintenance impacted domestic ferrous scrap demand.

The steel fabrication operations recorded strong operating income of $330 million in third quarter of 2023.

During the initial nine-month period of the year, SDI reported net income was $2.0 billion, or $11.98 per diluted share, compared with net income of $3.2 billion, or $17.21 per diluted share a year before. The net sales during the period was $14.6 billion, down from $17.4 billion for Jan-Sep ’22.