Steel Dynamics earnings rise, but revenues flat in 2nd quarter

For the first half of the year, net income was $205 million, or 84 cents per share, on net sales of $3.8 billion. That compared with adjusted net income of $84 million, or 35 cents per share, on net sales of $4.1 billion for the first six months of 2015.

“Year-over-year, first half flat roll steel import levels have declined approximately 25 percent and customer inventory levels are balanced with current demand requirements, supporting higher domestic flat roll steel mill utilization,” Mark Millett, President and CEO, said in a company statement. “The domestic steel demand outlook is relatively unchanged and steady, with the heavy equipment, agricultural and energy markets remaining weak, while automotive and construction continues to be strong.”

The company’s metals recycling operations achieved a meaningful improvement in profitability, based on a 30-percent improvement in the ferrous metal margin as well as increased shipments, the statement said.

Aside from the construction sector, however, long product steel demand is generally challenged and selling values are under pressure from excess domestic production capability, Millett said.