Steel Dynamics Sees Increase in Demand, Profits
For the quarter, which ended 31 March 2017, the Indiana-based steelmaker recorded US$200.8 million in net income on sales of US$2.4 billion. In the same quarter last year, the company reported US$62.7 million in net income on sales of US$1.7 billion.
“The increase in our earnings was principally driven by our flat-roll operations, as demand was strong and customer inventory levels continued to be positioned at historically low levels. We also experienced increased shipments from our long product steel divisions,” chief executive Mark Millett said in a statement.
“Steel demand from the automotive sector remained steady and construction continued to improve. Additionally, specific to our engineered bar products division, there was an overall general demand improvement, supported by positive movement in the heavy equipment and energy sectors,” he said.
In December, the company completed a US$100 million capital project at its Columbus sheet plant. The project largely entailed installation of a new paint line, which was put into service in December. Millett said start-up is proceeding well, with just under 13,000 tons having been shipped in the quarter.
“The successful market and product diversification achieved at Columbus will continue to benefit the coming years as we have accessed numerous new customers and end markets,” Millett said.
On the whole, Steel Dynamics shipped nearly 2.5 million tons of steel during the quarter, up about 9% from the same quarter last year. Additionally, average selling prices rose 29% to US$743 per ton.