Steel Dynamics reports dip in Q3 profit
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Fort Wayne-based Steel Dynamics Inc. (Nasdaq: STLD) is reporting third quarter net income of $914 million, down from $991 million during the same period last year. Despite the drop, the company is reporting record steel shipments and record earnings from its steel fabrication business.
“Our third quarter 2022 consolidated operating income was $1.2 billion, with adjusted EBITDA of $1.3 billion and record cash flow from operations of $1.5 billion,” said CEO Mark Millett. “These results continue to display the power of our highly diversified, value-added, circular manufacturing model – as the strength in our steel fabrication operations meaningfully offset lower earnings in our flat rolled steel businesses, with realized flat rolled steel selling values declining almost 15 percent during the quarter.”
Millett says the company experienced record quarterly steel shipments of 3.2 million tons, attributed to steady steel demand from the construction industry, as well as the automotive, industrial, and energy sectors.
“Third quarter operating income from our steel operations declined to $658 million despite record volume, due to significant metal spread compression within our flat rolled operations, while our long product metal spreads were steady to expanding,” said Millett. “Ferrous scrap pricing indices have decreased each month beginning in May and continued through October 2022, resulting in significantly lower earnings from our metals recycling operations. In contrast, our steel fabrication business achieved another record quarter, with earnings of $677 million, based on higher realized selling values, declining steel input costs, and a continued steady construction demand environment.”
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