Steel Dynamics (STLD) Reports In-Line Q2 EPS

Steel Dynamics (NASDAQ: STLD) reported Q2 EPS of $0.63, in-line with the analyst estimate of $0.63. Revenue for the quarter came in at $2.4 billion versus the consensus estimate of $2.39 billion.

"The team delivered a solid performance for the second quarter 2017 despite hesitant customer order entry and significantly higher quarter-over-quarter steel imports," said Mark D. Millett, President and Chief Executive Officer. "Our second quarter 2017 income from operations was $265 million with a trailing twelve month adjusted EBITDA record of $1.4 billion. The decrease in sequential quarterly earnings was principally driven by our flat roll operations, as increased average scrap costs outpaced average sales price growth. As mentioned in our mid-quarter guidance, we had a planned galvanizing line upgrade at our Butler Flat Roll Division and also experienced some start-up issues at our new Columbus Flat Roll Division paint line, which increased expenses and decreased value-added flat roll shipments in the quarter.

"We believe the customer order hesitancy was related to anticipated scrap price changes rather than any underlying softness in demand. Additionally, customer inventory levels continued to be positioned at historically low levels. Steel demand from the automotive sector remained steady, as the construction and energy sectors continued to improve," continued Millett.

"Second quarter 2017 operating income from our metals recycling platform remained aligned with the strong first quarter performance, in spite of somewhat lower shipments and metal spread, as the team continued to optimize costs throughout the business," continued Millett. "The fabrication group achieved another quarter of record shipments, a solid indicator that the non-residential construction market is continuing a positive growth profile."

For earnings history and earnings-related data on Steel Dynamics (STLD) click here.

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