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The steel producer reported adjusted earnings per share (EPS) of $3.67, exceeding analysts’ estimates of $3.51. However, revenue for the quarter was slightly below expectations at $4.7 billion, against the consensus estimate of $4.74 billion.
Chairman and CEO Mark D. Millett attributed the strong performance to solid execution and steady underlying steel demand, despite early volatility in steel orders. He noted that customer orders rebounded strongly in March, supporting increased pricing and solid order backlogs, particularly within the value-added coated flat rolled steel products portfolio. The company’s first-quarter operating income reached $751 million, with adjusted EBITDA at $879 million.
Comparing year-over-year figures, Steel Dynamics saw a decrease in net sales from $4.893 billion in the first quarter of the previous year to $4.7 billion in the same period this year. Despite this, the company’s net income of $584 million for the quarter was robust, albeit lower than the prior year’s first-quarter net income of $637 million, or $3.70 per diluted share.
Looking ahead, Millett expressed confidence in the domestic steel consumption for 2024, citing solid order entry activity across all business segments and firming steel pricing. He also highlighted the anticipated benefits from the company’s four new value-added flat rolled steel coating lines, which are expected to contribute to the second quarter of this year and more significantly in 2025.
The company’s outlook remains positive, with Millett emphasizing the strategic growth opportunity presented by the upcoming aluminum flat rolled products mill, set to begin operations in mid-2025. This expansion aligns with Steel Dynamics’ commitment to providing sustainable supply-chain solutions and diversifying its end markets.
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