Steel Dynamics Reports 2015 Loss
The company has 7
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowFort Wayne-based Steel Dynamics Inc. (Nasdaq: STLD) is reporting net income of $178 million in 2015, down from $323 million in 2014. Despite the loss, Chief Executive Officer Mark Millett says the company is well-positioned for future growth.
The company is also reporting net income of $22 million in fourth quarter 205, down from $97 million during the same period in 2014. Millett called the market environment during the fourth quarter the "most challenging in recent history for our steel and metals recycling operations."
"The domestic steel industry operated at production rates below 65 percent in November and December, representing the lowest levels this year caused by ongoing pressure from unfairly traded steel imports, customer destocking and seasonally lower demand," said Millett. "Enabled by our diversified and value-added product portfolio, our steel operations were again able to maintain a higher than industry average production utilization rate at 73 percent for the fourth quarter 2015."
Millett says customer steel inventories have started to realign with current demand which could result in increased steel production this year. "We continue to strengthen our financial position through strong cash flow generation, record liquidity, and the execution of our long-term strategy. We are uniquely, well-positioned for additional growth. Customer focus, coupled with our market diversification and low-cost operating platforms, support our ability to not only maintain our best-in-class industry performance, but to also grow in a challenging environment."