FORT WAYNE, Ind. – Steel dynamics Inc. (NASDAQ/GS: NASDAQ:) reported second-quarter 2024 earnings of $2.72 per share, narrowly missing analysts’ consensus estimate of $2.73.
However, the company’s revenue for the quarter exceeded expectations, coming in at $4.6 billion, versus the consensus estimate of $4.44 billion.
STLD shares rose 2.64% after the results.
The company’s second quarter performance showed a decline in net profit to $428 million from the previous year’s $812 million, which the CEO attributed to lower realized sales values in their steel business. Despite the recession, Steel Dynamics saw operating income from its metal recycling operations increase 42% to $32 million, supported by higher demand and increased metal dispersal. The steelmaking business maintained robust operating income of $181 million, consistent with first quarter results, thanks to increased volume and a backlog that extended into the fourth quarter of 2024.
Compared to the first half of 2023, the first half of 2024 saw a 6% decline in net sales to $9.3 billion and a 31% decline in operating income to $1.3 billion. This was mainly due to lower volumes and lower prices in the company’s steelmaking operations. However, the average external selling price for the company’s steel business increased slightly, and the average cost of scrap per ton melted decreased.
Looking ahead, Chairman and CEO Mark D. Millett expressed confidence in domestic steel consumption for the second half of 2024. He expects stable demand from the automotive, non-residential and industrial sectors. Millett also highlighted the company’s progress on new value-added flat-rolled steel coating lines and the construction of a flat-rolled aluminum products plant, which is expected to become operational in mid-2025.
Steel Dynamics’ commitment to health and safety, coupled with its focus on meeting customer needs, remains a cornerstone of its business model. Millett concluded by highlighting the company’s competitive position and its commitment to generating sustainable, long-term value for its stakeholders.
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