Steel Dynamics Guides Q2 Earnings Downward

Steel Dynamics, Inc. has provided its second quarter 2024 earnings guidance, with an expected range of $2.64 to $2.68 per diluted share. This represents a significant decrease from the company's sequential first quarter 2024 earnings of $3.67 per diluted share and the prior year's second quarter earnings of $4.81 per diluted share.

The company anticipates that its steel operations' profitability for the second quarter of 2024 will be notably lower than the sequential first quarter results, primarily due to lower realized pricing despite steady shipments. The demand for domestic steel remains robust, particularly in the automotive, non-residential construction, energy, and industrial sectors. However, hesitancy in steel buying has emerged as a result of a weakening scrap price environment.

On the other hand, the earnings from the company's metals recycling operations are expected to be higher than the sequential first quarter results, driven by stronger volumes in both ferrous and nonferrous materials.

In terms of steel fabrication operations, the company projects that second quarter 2024 earnings will be in line with sequential first quarter results, as increased shipments offset incrementally lower realized pricing. The non-residential construction sector remains solid, with a robust order backlog volume extending into the fourth quarter of 2024 and strong associated product pricing.

Steel Dynamics remains confident in its earnings outlook and cash flow generation, as evidenced by the repurchase of $247 million, or 1.1 percent, of its common stock during the second quarter through June 10, 2024.

The company is set to release its second quarter 2024 earnings after the markets close on Wednesday, July 17, 2024, and will hold a conference call the following day at 11:00 a.m. Eastern Daylight Time to review the results.

Steel Dynamics, Inc. is one of the largest domestic steel producers and metals recyclers in North America, with facilities across the United States and in Mexico. The company produces a wide range of 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. Additionally, the company produces liquid pig iron and processes and sells ferrous and nonferrous scrap. The market has reacted to these announcements by moving the company's shares 4.9% to a price of $126.55. For more information, read the company's full 8-K submission here.

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