Fort Wayne Indiana headquartered US’s leading steelmaker Steel Dynamics in latest guidance has lowered October-December 2022 quarter earnings to USD 3.34-3.38 per diluted share as compared to USD 5.03 in July-September quarter, Steel Dynamics said “Fourth quarter 2022 profitability from the company's steel operations is expected to be significantly lower than sequential third quarter results, based on seasonally lower shipments and metal spread compression, particularly within the flat roll operations. Metal spread compression was amplified by higher raw material costs, as the flat roll operations work through higher than current market priced pig iron inventories ordered in early 2022 in reaction to the Ukraine and Russia supply chain disruptions. The company believes flat roll steel prices have bottomed and expects them to increase into 2023 as underlying steel demand and corresponding order activity remains intact from the automotive, non-residential construction, industrial, and energy sectors with some weakness in the residential sector.”SDI also said “As ferrous and nonferrous scrap prices have stabilized, fourth quarter 2022 earnings from the company's metals recycling operations are expected to moderately improve compared to sequential third quarter results, based on increased volume more than offsetting lower average price realization.”SDI added “Fourth quarter 2022 earnings from the company's steel fabrication operations are expected to be strong and remain steady with third quarter results, expanding metal spreads more than offsetting slightly lower seasonal volumes. The non-residential construction sector remains steady as evidenced by customer order activity supporting a continuing historically strong order backlog, which the company anticipates will continue through 2023.”Steel Dynamics is one of the largest domestic steel producers and metals recyclers in the United States, based on estimated annual steelmaking and metals recycling capability, with facilities located throughout the United States, and in Mexico. Steel Dynamics produces steel products, including hot roll, cold roll, and coated sheet steel, structural steel beams and shapes, rail, engineered special-bar-quality steel, cold finished steel, merchant bar products, specialty steel sections and steel joists and deck. In addition, the company produces liquid pig iron and processes and sells ferrous and nonferrous scrap.
Fort Wayne Indiana headquartered US’s leading steelmaker Steel Dynamics in latest guidance has lowered October-December 2022 quarter earnings to USD 3.34-3.38 per diluted share as compared to USD 5.03 in July-September quarter, Steel Dynamics said “Fourth quarter 2022 profitability from the company's steel operations is expected to be significantly lower than sequential third quarter results, based on seasonally lower shipments and metal spread compression, particularly within the flat roll operations. Metal spread compression was amplified by higher raw material costs, as the flat roll operations work through higher than current market priced pig iron inventories ordered in early 2022 in reaction to the Ukraine and Russia supply chain disruptions. The company believes flat roll steel prices have bottomed and expects them to increase into 2023 as underlying steel demand and corresponding order activity remains intact from the automotive, non-residential construction, industrial, and energy sectors with some weakness in the residential sector.”SDI also said “As ferrous and nonferrous scrap prices have stabilized, fourth quarter 2022 earnings from the company's metals recycling operations are expected to moderately improve compared to sequential third quarter results, based on increased volume more than offsetting lower average price realization.”SDI added “Fourth quarter 2022 earnings from the company's steel fabrication operations are expected to be strong and remain steady with third quarter results, expanding metal spreads more than offsetting slightly lower seasonal volumes. The non-residential construction sector remains steady as evidenced by customer order activity supporting a continuing historically strong order backlog, which the company anticipates will continue through 2023.”Steel Dynamics is one of the largest domestic steel producers and metals recyclers in the United States, based on estimated annual steelmaking and metals recycling capability, with facilities located throughout the United States, and in Mexico. Steel Dynamics produces steel products, including hot roll, cold roll, and coated sheet steel, structural steel beams and shapes, rail, engineered special-bar-quality steel, cold finished steel, merchant bar products, specialty steel sections and steel joists and deck. In addition, the company produces liquid pig iron and processes and sells ferrous and nonferrous scrap.
