Greater Fort Wayne Business Weekly
Fort Wayne-based Steel Dynamics Wednesday reported a net loss for the second quarter of $16 million, or 8 cents per share, a smaller loss than the company had predicted in June.
The first-quarter results compared with a net loss of $88 million, or 28 cents per share, in the first quarter of the year, and net income of $210 million, or $1.05 per share, for second-quarter 2008.
Net sales for the second quarter of 2009 were $792 million, 3 percent lower than net sales of $815 million in the first quarter. Compared with the second quarter of 2008, net sales were down 67 percent due to much lower volume and lower selling values for steel and recycled metals.
"In the second quarter, the company's steel operations produced operating income of $36 million, with overall capacity utilization improving to approximately 50 percent, despite continued low operating rates at the long-products divisions," said Keith Busse, SDI's chairman and CEO.
The structural and rail division operated at about 25 percent of current capacity, but still achieved an operating profit for the quarter, he said.
"During the second quarter, we experienced a slight improvement in business conditions," Busse's statement continued. "It remains unclear whether this increase in business activity will persist, or will be short-lived, as we continue to see conflicting signs in the economy. While our flat-roll steel businesses are currently operating near capacity, we have seen only marginal improvement in long products. We have yet to see signs of improvement in the construction markets."
Competitor Nucor Corp. Thursday reported its second consecutive quarterly loss, but also improved its performance over the first quarter.
The Charlotte, N.C.-based company lost $133.3 million, or 43 cents per share, for the second quarter, compared with a net loss of $189.6 million, or 60 cents per share, in the first quarter.
In the second quarter of 2008, Nucor earned net income of $580.8 million, or $1.94 per share.
Nucor's net sales for the second quarter were down 7 percent, to $2.48 billion, compared with $2.65 billion in the first quarter; and down 65 percent compared with $7.09 billion in the second quarter of 2008. Average sales price per ton decreased 16 percent from the first quarter of 2009 and 34 percent from the second quarter of last year.
SDI has operations in Columbia City and Butler. Nucor has operations in St. Joe and Waterloo.