FORT
WAYNE, Ind., Dec. 15,
2023 /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS:
STLD) today provided fourth quarter 2023 earnings guidance in the
range of $2.60 to $2.64 per diluted share. Comparatively, the
company's third quarter 2023 earnings were $3.47 per diluted share and prior year fourth
quarter earnings were $3.61 per
diluted share.
Fourth quarter 2023 profitability from the company's steel
operations is expected to be lower than sequential third quarter
results, based on steady shipments and metal spread contraction as
lower realized flat rolled steel pricing more than offset lower
scrap costs. Steel order activity remains solid as evidenced by
extended order lead times and recent pricing increases heading into
the first quarter of 2024.
Fourth quarter 2023 earnings from the company's metals recycling
operations are expected to be comparable to sequential third
quarter results, based on pricing related metal spread expansion
more than offsetting lower volume, as demand from domestic steel
mills declined due to maintenance outages.
Fourth quarter 2023 earnings from the company's steel
fabrication operations are expected to be lower compared to
sequential third results, based on lower shipments and metal spread
compression as realized selling values declined and steel input
costs increased in the quarter. Steel joist and deck order activity
has improved during the fourth quarter, when compared to the
sequential third quarter and pricing has stabilized.
Through December 13, 2023, the
company has repurchased $1.4 billion,
or almost eight percent, of its common stock and paid cash
dividends to shareholders of $271
million during the year.
The company plans to release its fourth quarter 2023 and
full-year earnings after the markets close on Tuesday, January 23, 2024, and will hold a
conference call the next day at 11:00 a.m. Eastern Time to
review the company's results.
About Steel Dynamics, Inc.
Steel Dynamics is one of the largest domestic steel producers
and metals recyclers in North
America, 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.
Forward-Looking Statements
This report contains some predictive statements about future
events, including statements related to conditions in domestic or
global economies, conditions in steel, aluminum, and recycled
metals market places, Steel Dynamics' revenues, costs of purchased
materials, future profitability and earnings, and the operation of
new, existing or planned facilities. These statements, which we
generally precede or accompany by such typical conditional words as
"anticipate", "intend", "believe", "estimate", "plan", "seek",
"project", or "expect", or by the words "may", "will", or "should",
are intended to be made as "forward-looking", subject to many risks
and uncertainties, within the safe harbor protections of the
Private Securities Litigation Reform Act of 1995. These statements
speak only as of this date and are based upon information and
assumptions, which we consider reasonable as of this date,
concerning our businesses and the environments in which they
operate. Such predictive statements are not guarantees of future
performance, and we undertake no duty to update or revise any such
statements. Some factors that could cause such forward-looking
statements to turn out differently than anticipated include: (1)
domestic and global economic factors; (2) global steelmaking
overcapacity and imports of steel, together with increased scrap
prices; (3) pandemics, epidemics, widespread illness or other
health issues, such as COVID-19 or its variants; (4) the cyclical
nature of the steel industry and the industries we serve; (5)
volatility and major fluctuations in prices and availability of
scrap metal, scrap substitutes and supplies, and our potential
inability to pass higher costs on to our customers; (6) cost and
availability of electricity, natural gas, oil, or other energy
resources are subject to volatile market conditions; (7) increased
environmental, greenhouse gas emissions and sustainability
considerations or regulations; (8) compliance with and changes in
environmental and remediation requirements; (9) significant price
and other forms of competition from other steel and aluminum
producers, scrap processors and alternative materials; (10)
availability of an adequate source of supply of scrap for our
metals recycling operations; (11) cybersecurity threats and risks
to the security of our sensitive data and information technology;
(12) the implementation of our growth strategy; (13) litigation and
legal compliance; (14) unexpected equipment downtime or shutdowns;
(15) governmental agencies may refuse to grant or renew some of our
licenses and permits; (16) our senior unsecured credit facility
contains, and any future financing agreements may contain,
restrictive covenants that may limit our flexibility; and (17) the
impacts of impairment charges.
More specifically, we refer you to our more detailed explanation
of these and other factors and risks that may cause such predictive
statements to turn out differently, as set forth in our most recent
Annual Report on Form 10-K under the headings Special
Note Regarding Forward-Looking Statements and Risk Factors, in
our Quarterly Reports on Form 10-Q, or in other reports which we
file with the Securities and Exchange Commission. These reports are
available publicly on the Securities and Exchange Commission
website, www.sec.gov, and on our website, www.steeldynamics.com
under "Investors – SEC Filings."
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SOURCE Steel Dynamics, Inc.