SDI Reported Drag on Profits, Driven by Declining Steel Revenue
The net sales for the quarter stood at $4.6 billion.
SEATTLE (Scrap Monster): Fort Wayne, Indiana-based Steel Dynamics, Inc. (SDI) reported second quarter 2024 results.
The company reported net income of $428 million, or $2.72 per diluted share during the quarter. This compares with net income was $584 million, or $3.67 per diluted share in Q1 this year and $812 million, or $4.81 per diluted share in the prior year second quarter. The net sales for the quarter stood at $4.6 billion.
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SDI reported cash flow from operations of $383 million during Q2 this year. As of June 30, 2024, the liquidity of the company was $2.7 billion. The company repurchased $309 million of the company’s common stock in Q2 2024.
The Q2 operating income for the company’s steel operations was $442 million, slightly lower when compared with the sequential quarter results. The average ferrous scrap cost per ton melted at the company’s steel mills declined $29 sequentially to $388 per ton. Upon comparison with the sequential first quarter, the Q2 operating income from the company’s metals recycling operations recorded 42% surge to $32 million. Also, SDI’s steel fabrication operations achieved strong operating income of $181 million, slightly higher from $178 million during the initial quarter of the year.
Mark D. Millett, Chairman and CEO said that the company anticipates solid domestic steel consumption in the second half of 2024.