By Sarah Coffey
Steel Dynamics Inc. on Thursday said lower average flat roll steel pricing is expected to more than offset increased flat roll steel shipments for its second quarter.
The Fort Wayne, Ind.-based domestic steel producer and metals recycler guided for second-quarter adjusted profit of $6.61 to $6.65 a share, which excludes 28 cents a share in impact from costs associated with the startup of the company’s Sinton Texas Flat Roll Steel Mill growth investment.
“Demand for the company’s long product steel products is also strong, supporting increased average realized pricing and expected record shipments for the company’s Engineered Bar Products, Roanoke Bar, and Structural and Rail steel divisions.”
“Second-quarter 2022 profitability from the company’s steel operations is expected to be historically strong, but lower than first-quarter 2022 results, due to lower earnings from the company’s flat roll steel operations, as lower average flat roll steel pricing is expected to more than offset increased flat roll steel shipments.”
On metal recycling operations:
“Second-quarter 2022 earnings from the company’s metals recycling operations are expected to be significantly higher than sequential first-quarter results, based on strong demand supporting increased shipments and higher pricing.”
On steel fabrication results:
“Second-quarter 2022 earnings from the company’s steel fabrication operations are expected to be meaningfully higher than record first-quarter results, based on record shipments and significantly higher selling values more than offsetting marginally higher steel input costs.”
On nonresidential construction:
“The nonresidential construction sector remains strong as evidenced by robust order activity, resulting in a continuing historically strong order backlog, with record forward-pricing for the company’s steel fabrication platform.”
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