SDI's Earnings Hit Peak in 2018, Boosted by Record Steel Shipments

SEATTLE (Scrap Monster): Steel Dynamics, Inc. announced results for the fourth quarter and for the full year 2018.

The annual net income hit a record of $1.3 billion or $5.35 per diluted share in 2018, as compared with the annual 2017 net income of $813 million or $3.36 per diluted share. The net sales during the previous year hit a new record of $11.8 billion, significantly higher when compared with the sales of $9.5 billion in 2017. The annual operating income too surged higher from $1.1 billion in 2017 to $1.7 billion in 2018. Record steel shipments and improved steel metal spread boosted the earnings from steel operations.

During Q4, the company reported net income of $305 million or $1.28 per diluted share, marginally lower when compared with sequential third quarter income of $398 million or $1.69 per dilutes share. The net sales too declined from $3.2 billion to $2.3 billion over the quarter. The overall operating income from steel operations saw drastic decline by 30% from the prior quarter to total $402 million. The operating income from metals recycling operations dropped from $18 million to $17 million sequentially during Q4. On the contrary, operating income from fabrication operations saw marginal improvement from $13 million in Q3 to $15 million in fourth quarter of 2018.

Steel Dynamics foresees steady growth in North American steel consumption, mainly on the back of strong domestic steel demand fundamentals and continued consumer optimism. The company will continue to focus on organic and transactional growth opportunities, said Mark D. Millett, President and Chief Executive Officer.