Steel Dynamics reports 96% increase in adjusted earnings during first quarter
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Steel Dynamics, Inc. announced adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of US$ 421 million during first quarter 2017, an 96% increase compared to the US$ 214 million EBITDA from the same period in 2016.
The company reported first quarter 2017 net income of US$ 201 million, or US$ 0.82 per diluted share, with net sales of US$ 2.4 billion. Comparatively, prior year first quarter net income was US$ 63 million, or US$ 0.26 per diluted share, with net sales of US$ 1.7 billion.
"The increase in our earnings was principally driven by our flat roll operations, as demand was strong and customer inventory levels continued to be positioned at historically low levels. We also experienced increased shipments from our long product steel divisions. Steel demand from the automotive sector remained steady and construction continued to improve, said Mark D. Millett, President and Chief Executive Officer.
"Operating income from our metals recycling platform more than doubled in the first quarter 2017, as domestic steel mill utilization increased, strengthening both ferrous scrap shipments and metal spread," continued Millett.
The first quarter 2017 average product selling price for the company's steel operations increased US$ 63 to US$ 743 per ton. The average ferrous scrap cost per ton melted increased US$ 44 to US$ 264 per ton.
Steel Dynamics, Inc. is one of the largest domestic steel producers and metals recyclers in the United States 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.
It's New Millennium Building Systems wholly-owned subsidiary is the nation's second largest producer of steel building components. New Millennium operates a facility in Juarez, Chihuahua, which fabricates steel building components for use primarily in low-rise non-residential buildings including commercial, industrial, and government construction.