SDI Anticipates Notable Dip in Profits from Steel Operations

SEATTLE (Scrap Monster): Fort Wayne, Indiana-based Steel Dynamics, Inc. (SDI) announced earnings guidance for Q4 2022. The company expects huge drop in profitability from steel operations.

The Q4 2022 earnings of the company are likely to range between $3.34 and $3.38 per diluted share. Also, the fourth quarter 2022 adjusted earnings are likely to be in the range of $4.10 to $4.14 per diluted share. This compares with sequential third quarter 2022 earnings of $5.03 per diluted share and adjusted earnings were $5.46 per diluted share. It must be noted that SDI had reported earnings and adjusted earnings of $5.49 and $5.78 per diluted share respectively during the prior year fourth quarter.

The profitability from steel operations may take a hit due to seasonally lower shipments and metal spread compression, especially within the flat rolled operations. The company’s metals recycling operations are expected to post moderately improved earnings compared to sequential third quarter results, driven by higher volumes and better stability in ferrous and nonferrous scrap prices. Also, the steel fabrication operations are expected to deliver steady results in Q4 this year, said the company press release.