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Researched by Industrial Info Resources (Sugar Land, Texas)--Steel Dynamics Incorporated (NASDAQ/GS: STLD) (Fort Wayne, Indiana) saw its second-quarter 2018 net income more than double to $362 million from the same period last year, and expects capital expenditures for the second half of 2018 to be at least $150 million, executives with the steel producer said Tuesday. Industrial Info is tracking more than $417 million worth of active Steel Dynamics projects, including a galvanized steel line addition in Mississippi that was announced in June.
The company reported second-quarter net sales of $3.1 billion, compared with net sales of $2.4 billion in second-quarter 2017.
Chief Executive Officer Mark Millett said Steel Dynamics experienced improved demand and pricing across its entire platform, with the increase in earnings principally driven by its flat roll operations. Domestic steel demand remained strong from the automotive, construction and energy sectors, while general industrial demand continued to grow.
The company announced in June its plans for a new $140 million galvanizing line at its flat roll operations in Columbus, Mississippi. The new galvanizing line will have an annual coating capability of 400,000 tons. For more information, see Industrial Info's project report.
The company reported it planned to invest between $90 million and $100 million during the next 24 months to upgrade certain process lines and hot strip mill capability.
Also in June, Steel Dynamics announced the completion of its $400 million acquisition of Heartland Steel Processing LLC (formerly known as Companhia Siderurgica Nacional LLC), located in Terre Haute, Indiana. Heartland includes a continuous pickle line, a cold mill and a galvanizing line, with the annual capability to produce 1 million tons of cold roll steel, with galvanizing capacity of 360,000 tons. With the Heartland acquisition and the new galvanizing line in Mississippi, Steel Dynamics will have 10 flat roll steel galvanizing lines with about 4.2 million tons of coating capacity, the company said.
Steel Dynamics plans to increase production at Heartland to about 40,000 tons per month during the second half of 2018, with expectations to reach an annual run-rate of between 800,000 tons and 900,000 tons of cold roll, pickled and oiled, and galvanized flat roll steel by mid-year 2019, Millett said.
Millett said during the company's earnings conference call that efforts by the U.S. to level the playing field with overseas steel producers has helped to boost U.S. flat roll production. The Trump administration has placed a 25% tariff on steel imports.
Industrial Info also is tracking a planned $100 million equipment upgrade project at the facility in Columbus, Mississippi, as well as a $75 million minimill expansion there. For more information, see Industrial Info's project reports on the equipment upgrades and minimill expansion.
Steel Dynamics isn't the only U.S.-based steel company to have reported much stronger second-quarter earnings. Nucor Corporation (NYSE: NUE) (Charlotte, North Carolina) reported second-quarter net earnings of $683 million, up from $323 million in second-quarter 2017. For more information, see July 20, 2018, article - Steel Producer Nucor Expects to Double Capital Expenditures this Year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
The company reported second-quarter net sales of $3.1 billion, compared with net sales of $2.4 billion in second-quarter 2017.
Chief Executive Officer Mark Millett said Steel Dynamics experienced improved demand and pricing across its entire platform, with the increase in earnings principally driven by its flat roll operations. Domestic steel demand remained strong from the automotive, construction and energy sectors, while general industrial demand continued to grow.
The company announced in June its plans for a new $140 million galvanizing line at its flat roll operations in Columbus, Mississippi. The new galvanizing line will have an annual coating capability of 400,000 tons. For more information, see Industrial Info's project report.
The company reported it planned to invest between $90 million and $100 million during the next 24 months to upgrade certain process lines and hot strip mill capability.
Also in June, Steel Dynamics announced the completion of its $400 million acquisition of Heartland Steel Processing LLC (formerly known as Companhia Siderurgica Nacional LLC), located in Terre Haute, Indiana. Heartland includes a continuous pickle line, a cold mill and a galvanizing line, with the annual capability to produce 1 million tons of cold roll steel, with galvanizing capacity of 360,000 tons. With the Heartland acquisition and the new galvanizing line in Mississippi, Steel Dynamics will have 10 flat roll steel galvanizing lines with about 4.2 million tons of coating capacity, the company said.
Steel Dynamics plans to increase production at Heartland to about 40,000 tons per month during the second half of 2018, with expectations to reach an annual run-rate of between 800,000 tons and 900,000 tons of cold roll, pickled and oiled, and galvanized flat roll steel by mid-year 2019, Millett said.
Millett said during the company's earnings conference call that efforts by the U.S. to level the playing field with overseas steel producers has helped to boost U.S. flat roll production. The Trump administration has placed a 25% tariff on steel imports.
Industrial Info also is tracking a planned $100 million equipment upgrade project at the facility in Columbus, Mississippi, as well as a $75 million minimill expansion there. For more information, see Industrial Info's project reports on the equipment upgrades and minimill expansion.
Steel Dynamics isn't the only U.S.-based steel company to have reported much stronger second-quarter earnings. Nucor Corporation (NYSE: NUE) (Charlotte, North Carolina) reported second-quarter net earnings of $683 million, up from $323 million in second-quarter 2017. For more information, see July 20, 2018, article - Steel Producer Nucor Expects to Double Capital Expenditures this Year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
