Steel Dynamics

FORT WAYNE — Steel Dynamics Inc. achieved new records for sales and income in the July-September quarter, the company announced Monday.

The company also broke records for operating income from its steel and steel fabrication divisions with $1.4 billion and $89 million, respectively.

SDI operates a flat-roll steel mill and its New Millennium Building Systems steel fabrication plant southwest of Butler, as well as an OmniSource metals recycling site in Auburn.

Overall, the company reported record third-quarter 2021 net sales of $5.1 billion and net income of $991 million, or $4.85 per diluted share.

Comparatively, third-quarter 2020 net sales were $2.3 billion, with net income of $100 million, or $0.47 per diluted share. The company’s April-June 2021 earnings were $3.32 per diluted share.

“The team continued to perform extraordinarily well, achieving record quarterly 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. “This is truly an incredible achievement and a testament to the passion and commitment of our team.”

Millett added, “During the third quarter, steel demand remained strong as product pricing continued its positive trajectory across our entire steel platform. … Domestic steel consumption was strong from the automotive, construction, and industrial sectors, while the energy sector continued to show signs of recovery.”

Millett said SDI’s metals recycling operations sustained strong earnings, even as scrap prices declined in August and September.

“Our steel fabrication backlog continues to grow, remaining at record volumes and forward-pricing,” he added.

Third-quarter 2021 operating income for the company’s steel operations was 33% higher than second-quarter results. Third-quarter 2021 average selling prices for the company’s steel operations increased $258 sequentially to $1,550 per ton.

Steel joist and deck pricing has strengthened significantly to record levels, due strong demand, Millett said.

“Current market conditions are in place to support solid domestic steel demand for the fourth quarter and into 2022,” he said. “Order entry activity continues to be robust across our businesses. … Domestic steel demand remains solid in our automotive, construction and industrial end-markets. We believe this momentum will continue and that our fourth-quarter consolidated earnings could represent another record performance.”

SDI’s new Sinton Texas EAF Flat Roll Steel Mill is expected to begin production before the end of 2021, and the company said it believes its shipments could be in the range of 2.0 million tons to 2.2 million tons in 2022.

“From our founding over 25 years ago, Steel Dynamics has been intentional in managing our resources sustainably for the benefit of our teams, communities and the environment,” Millett said. “We are a steel industry leader in sustainability, operating exclusively with electric arc furnace technology with a circular manufacturing model. As our journey continues, we are committed to the reduction of our environmental footprint, including a goal for our steel mills to be carbon-neutral by 2050.”

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