SDI's Metals Recycling Operations Drive Robust Q1 2020 Results

SEATTLE (Scrap Monster): Steel Dynamics, Inc. (SDI) announced financial results for the initial quarter of the current year.

The company reported net income of $187 million or $0.88 per diluted share on net sales of $2.6 million. In the prior year quarter, it had posted net income of $204 million or $0.91 per diluted share, whereas net sales had totalled $2.8 billion. The quarterly performance delivered significant improvement when compared with Q4 2019 net sales of $2.4 billion and net income of $121 million, or $0.56 per diluted share.

SDI reported operating income of $293 million from its steel operations, significantly higher by over 45% when matched with the sequential quarter. It reported increased volume for both flat rolled and long products. The operating income from metals recycling operations increased to $8 million compared to net loss of $5 million in the prior quarter. The steel fabrication operations posted lower operating income of $29 million, mainly due to seasonally lower shipments.

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Mark D. Millett, President and Chief Executive Officer stated that the underlying solid steel demand, along with its value-added product capabilities helped the company to achieve record steel shipments during the quarter. It is too early tom determine the full scope of the negative impacts of COVID-19 pandemic, he added.