SDI Guides to Lower Q4 Earnings
12/17/2024 - Steel Dynamics Inc. (SDI) expects to see its fourth-quarter profits fall partly on account of lower average prices for its mills and an unplanned outage at its Butler, Ind., USA, facility.
The company said on Monday that it is anticipating earnings in the range of US$1.26 to US$1.30 per diluted share, down approximately 51% from the fourth quarter of last year.
SDI said that in addition to lower prices, results are to be impacted by seasonally lower shipments. Also, the Butler outage cost it 50,000 tons of production, it said.
Nevertheless, the company offered an upbeat outlook for early 2025.
“Flat-rolled steel prices have stabilized, and underlying steel demand remains seasonally steady for the primary steel-consuming sectors, as evidenced through solid customer order activity. Customers have been positive concerning the business outlook for 2025.”
Moreover, the order backlog at its steel fabrication business extends deep into the first half of 2025 at attractive pricing levels, it said.
“Current order activity is steady with expectations for improved volumes in 2025, as interest rates decline and the support from the U.S. infrastructure program and onshoring are expected to positively impact demand for not only steel joist and deck products, but also for flat-rolled and long product steel.”
SDI said that in addition to lower prices, results are to be impacted by seasonally lower shipments. Also, the Butler outage cost it 50,000 tons of production, it said.
Nevertheless, the company offered an upbeat outlook for early 2025.
“Flat-rolled steel prices have stabilized, and underlying steel demand remains seasonally steady for the primary steel-consuming sectors, as evidenced through solid customer order activity. Customers have been positive concerning the business outlook for 2025.”
Moreover, the order backlog at its steel fabrication business extends deep into the first half of 2025 at attractive pricing levels, it said.
“Current order activity is steady with expectations for improved volumes in 2025, as interest rates decline and the support from the U.S. infrastructure program and onshoring are expected to positively impact demand for not only steel joist and deck products, but also for flat-rolled and long product steel.”
