Sunny. High 74F. Winds N at 5 to 10 mph..
Mostly clear. Low around 50F. Winds NNE at 5 to 10 mph.
FORT WAYNE — Fort Wayne-based Steel Dynamics Inc. on Thursday provided record second-quarter 2022 earnings guidance in the range of $6.33 to $6.37 per diluted share.
Excluding the impact from costs associated with the startup of the company’s Sinton Texas Flat Roll Steel Mill growth investment of an estimated $76 million, or $0.28 per diluted share, the company expects second-quarter 2022 adjusted earnings to be in the range of $6.61 to $6.65 per diluted share.
Comparatively, the company’s sequential first quarter 2022 earnings were $5.71 per diluted share, and adjusted earnings were $6.02 per diluted share excluding costs of $0.31 per diluted share (net of capitalized interest), associated with construction and startup of the company’s Texas Flat Roll Steel Mill. Prior year second-quarter earnings were $3.32 per diluted share and adjusted earnings were $3.40 per diluted share, excluding costs of $0.08 per diluted share, associated with construction of the company’s Texas Flat Roll Steel Mill.
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.
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. Despite softening hot roll coil steel pricing, broad steel demand remained solid during the second quarter, led by the automotive, construction, and industrial sectors, with energy continuing to improve.
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.
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. The non-residential 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. The company anticipates this momentum to continue into 2023 based on these dynamics.
Based on continued confidence in the company’s earnings outlook and cash flow generation, the company repurchased $397 million, or over 2.5%, of its common stock during the second quarter through June 10.
Your comment has been submitted.
There was a problem reporting this.
Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language. PLEASE TURN OFF YOUR CAPS LOCK. Don't Threaten. Threats of harming another person will not be tolerated. Be Truthful. Don't knowingly lie about anyone or anything. Be Nice. No racism, sexism or any sort of -ism that is degrading to another person. Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts. Share with Us. We'd love to hear eyewitness accounts, the history behind an article.
We're always interested in hearing about news in our community. Let us know what's going on!