Steel Dynamics Breaks Records on Sales
Article by KPC Media | KPC News | July 20, 2021
FORT WAYNE — Steel Dynamics Inc. on Monday reported record-setting second quarter 2021 financial results.
The company achieved record net sales of $4.5 billion and net income of $702 million. Excluding costs of $23 million associated with construction of the company’s new Sinton, Texas, Flat Roll Steel Mill, second quarter adjusted net income was $719 million, or $3.40 per diluted share.
Comparatively, the company’s first quarter 2021 adjusted earnings were $2.10 per diluted share.
Steel Dynamics operates its original flat-roll steel mill and New Millennium Building Systems plant southwest of Butler and an OmniSource metals recycling station in Auburn.
“The team performed exceptionally well, achieving record quarterly operational and financial results, including record sales, operating income, cash flow from operations, and adjusted EBITDA, ”said Mark D. Millett of Auburn, SDI’s chairman and chief executive officer.
“Our second quarter 2021 operating income increased 61% sequentially to $956 million, with adjusted EBITDA of over $1.0 billion. We continue to achieve numerous individual operating and financial records —a truly amazing achievement and a testament to the passion and dedication of our team.”
“During the second quarter, steel demand remained robust, as shipments and product pricing continued their positive momentum across our entire steel platform,” Millett added. “Domestic steel consumption was strong from the automotive, construction and industrial sectors, while the energy sector continued to show signs of rebounding.
“Second quarter operating income from our steel operations was a record $1 billion, and our metals recycling operations sustained strong earnings ... Our steel fabrication operations once again achieved record quarterly shipments and ended June with another record order backlog, as we are in the middle of the summer construction season.”
The company’s steel fabrication operations, including New Millennium Building Systems, reported operating income of $28 million in the second quarter, almost tripling the sequential first quarter results.
“We remain confident that macroeconomic and market conditions are in place to support strong domestic steel demand in 2021 and beyond,” Millett said. “We continue to see strong steel demand coupled with extremely low customer steel inventories throughout the supply chain. The automotive sector continues to be strong, despite the electronic chip shortage, and other sectors such as construction, equipment and transportation remain solid.”
He added, “We believe this momentum will continue throughout the year and that our third quarter 2021 earnings could represent another record performance.”
Millett said due to excessive heavy rains in Texas, steel production at the new Sinton mill will be delayed and is now planned to start mid-fourth-quarter 2021.
He added, “We recently announced greenhouse gas reduction and renewable energy goals, including a goal for our steel mills to be carbon neutral by 2050.”
Article source: https://www.kpcnews.com/thestar/article_e2ceff4e-2c9b-5c71-8dd8-f8be66a16dbc.html