Steel Dynamics Inc (SDI) may break a quarterly earnings record in the first quarter, Kallanish learns from company guidance.
SDI expects to earn $1.88-1.92/diluted share in Q1 – or 1.94-1.98/share if the $0.06/share ($18 million) associated with its Sinton, Texas, flat-rolled mill construction is discounted.
By comparison, SDI earned $0.88/share in Q1 2020 – or $187m.
“First quarter 2021 profitability from the company’s steel operations is expected to be significantly higher than sequential fourth quarter results, driven by flat roll metal spread expansion, as strong demand continues to support flat roll steel prices,” the company says.
The trend will likely continue well into the second quarter, SDI adds.
“Domestic steel demand remains strong, with the automotive and construction sectors leading the momentum. Order entry continues to be robust as strong demand, coupled with continuing historically low flat roll steel inventories underpin higher steel selling values,” it says.
Mini mill competitor Nucor announced earlier this week that it also expects Q1 2021 to produce record profits for the company.
Dan Hilliard USA
