Steel Dynamics to Set Fresh Record in Steel Sector Profitability

SEATTLE (Scrap Monster): Steel Dynamics, Inc. (SDI) announced that its fourth quarter earnings are likely to range between $5.46 and $5.50 per diluted share. Excluding the impact from performance-based special compensation and costs associated with startup of the company’s Sinton Texas Flat Roll Steel Mill, the company expects the Q4 2021 adjusted earnings to range between $5.69 and $5.73 per diluted share.

In comparison, the company had reported earnings and adjusted earnings of $4.85 and $4.96 per diluted share respectively in the sequential third quarter 2021. The earnings and adjusted earnings had totalled $0.89 per diluted share and $0.97 per diluted share respectively.

The Q4 profitability from SDI’s steel operations is expected to surge higher from the prior quarter, driven by strong underlying steel demand and metal spread across the platform. The momentum continues to be led by strong domestic demand, especially from sectors such as automotive, construction and industrial.

Meantime, the metals recycling operations are likely to match the sequential Q3 results, driven by improved metals margin. The ferrous scrap demand at many mills registered decline, on account of planned maintenance outage at domestic mills. The Q4 earnings from steel fabrication operations are expected to record significant surge over the sequential quarter, the company press release said.

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