FORT WAYNE, Ind. - Steel Dynamics , Inc. (NASDAQ/GS: NASDAQ:STLD) reported second-quarter 2024 earnings of $2.72 per share, narrowly missing the analyst consensus estimate of $2.73.
However, the company's revenue for the quarter exceeded expectations, coming in at $4.6 billion against the consensus estimate of $4.44 billion.
STLD stock was up 2.64% following the results.
The company's second-quarter performance showcased a decline in net income to $428 million from the previous year's $812 million, which the CEO attributed to lower realized selling values in their steel operations. Despite the downturn, Steel Dynamics saw an increase in operating income from its metals recycling operations by 42% to $32 million, buoyed by higher demand and expanded metal spread. The steel fabrication operations maintained a robust operating income of $181 million, consistent with the first quarter's results, driven by increased volume and a backlog extending through the fourth quarter of 2024.
Compared to the first half of 2023, the first half of 2024 saw a 6% decrease in net sales to $9.3 billion and a 31% decline in operating income to $1.3 billion. This was primarily due to lower volume and pricing from the company's steel fabrication operations. However, the average external selling price for the company's steel operations saw a slight increase, and the average ferrous scrap cost per ton melted decreased.
Looking ahead, Chairman and CEO Mark D. Millett expressed confidence in the domestic steel consumption for the second half of 2024. He anticipates steady demand from the automotive, non-residential construction, and industrial sectors. Millett also highlighted the company's progress on new value-added flat rolled steel coating lines and the construction of an aluminum flat rolled products mill, which is expected to begin operations in mid-2025.
Steel Dynamics' commitment to health and safety, coupled with its focus on meeting customer needs, continues to be a cornerstone of its business model. Millett concluded by emphasizing the company's competitive positioning and its drive to generate long-term sustainable value for its stakeholders.
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