Robust Steel Shipments Drive SDI's Q3 Income to Record High

SEATTLE (Scrap Monster): Steel Dynamics, Inc. delivered record operational and financial results for Q3 2018. The company reported net income of $1.69 per diluted share on net sales of $3.2 billion during the quarter. This is upon comparison with the net income of $0.64 per diluted share and net sales of $2.4 billion recorded during the corresponding quarter last year. The company reported highest ever income and adjusted EBITDA in Q3 ’18.

According to Mark D. Millett, President and Chief Executive Officer, record steel shipments, notable surge in average steel selling prices and huge metal spread expansion across its steel operations resulted in the strong financial performance by the company. The demand from major steel consuming sectors including construction, automotive and energy continued to remain strong.

Meantime, the company’s earnings from metal recycling platform reported decline during Q3 this year, mainly on account of sharp drop in non-ferrous sales volume. The income dropped from $26 million in the prior quarter to $18 million in Q3. On the other hand, the robust demand from non-residential construction sector has resulted in record shipments by its steel fabrication segment.

Commenting on the outlook, Steel Dynamics hoped that steel consumption will likely remain strong, based on strong domestic demand. The recent acquisition and expansion initiatives will act as key drivers to future growth, it said.