#United States #Fort Wayne #Steel Dynamics #Earnings #Metals Recycling

Steel Dynamics Predicts Earnings Decline for Fourth Quarter 2024

Steel Dynamics, Inc. (NASDAQ/GS: STLD), one of North America's largest steel producers, has announced its earnings guidance for the fourth quarter of 2024, projecting diluted earnings per share in the range of $1.26 to $1.30. This represents a significant decrease from the previous quarter's earnings of $2.05 and a drop from last year's fourth quarter earnings of $2.61.

The company's forecast indicates that profitability from its steel operations will be considerably lower than in the sequential third quarter. The anticipated decline is attributed to several factors: a downturn in average realized pricing, seasonal reductions in shipments, and an unexpected outage in the Butler Flat Roll Division, which is expected to diminish production volume by approximately 50,000 tons. Overall, flat rolled steel prices have stabilized while demand from core sectors remains seasonally steady, indicated by strong order activity from customers who express optimism about the business outlook for 2025.

Additionally, Steel Dynamics anticipates that fourth quarter earnings from its metals recycling operations will surpass those of the preceding quarter, driven by steady ferrous volume and stable average pricing. However, earnings from steel fabrication operations are expected to decline as well, due to seasonal shipment reductions and a slight decrease—less than five percent—in average realized pricing. Replacement of outstanding orders remains consistent, extending through the first half of 2025, aided by favorable pricing conditions.

The company is forward-looking and continues to show confidence in its earnings and cash flow prospects. As part of this strategic outlook, Steel Dynamics has engaged in stock repurchases, totaling $250 million—equivalent to slightly over one percent of its common stock—during the fourth quarter up until December 10, 2024.

Furthermore, the company's earnings report for the fourth quarter of 2024 is scheduled for release after market closure on January 22, 2025, followed by a conference call the next day at 11:00 AM Eastern Standard Time to discuss the financial outcomes.

About Steel Dynamics, Inc.

Steel Dynamics is recognized for its extensive capabilities within the steel and metals recycling industry, with manufacturing facilities strategically positioned across the United States and Mexico. Its product offerings encompass a wide range, including hot rolled, cold rolled, and coated sheet steel; structural steel beams; rail; engineered special-bar-quality steel; as well as liquid pig iron and diverse ferrous and nonferrous scrap products.

Looking Ahead

Despite the predicted revenue reductions, the company remains committed to navigating the present economic climate, emphasizing its efforts to maintain operational efficiency and strategic growth. Steel Dynamics is well-positioned for the anticipated steady demand in 2025, fueled by domestic economic recovery, the U.S. infrastructure programs, and favorable interest rate trends.