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Released July 21, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Major U.S. steel producer Steel Dynamics Incorporated (NASDAQ:STLD) (Fort Wayne, Indiana) reported a variety of record financial and operational results for second-quarter 2021, thanks to strong steel demand and high product prices.
Demand for steel remained high during the second quarter, while historically low customer inventories supported the upward trajectory for the company's product prices, according to Mark Millet, Steel Dynamics' chairman and chief executive officer. "Higher steel selling values drove significant metal spread expansion across the entire platform and were most prominent within the flat roll steel operations," he said on the company's second-quarter earnings call on Tuesday.
Steel Dynamics saw record second-quarter operating income of $956 million, up 61% from the first quarter, and record net income of $702 million -- an increase from $75 million year-over-year. Net sales for the most recent quarter also reached an all-time high, $4.5 billion, compared with $2.1 billion in the same period a year earlier.
For the second quarter, the company's average per-ton sales price for steel was $1,292 per ton, up from $755 per ton in second-quarter 2020. The steel and fabrication sectors saw record quarterly shipments of 2.9 million tons and 189,000 tons, respectively, and the fabrication sector ended June with a record order backlog, according to the company's latest earnings release.
Adjusted earnings before income taxes, interest expenses, depreciation and amortization (EBITDA) also reached a record second-quarter high--of more than $1 billion--excluding the costs associated with the construction of the company's flat-rolled steel mill in Sinton, Texas, which is planned for completion in August.
The facility will produce 3 million tons per year of various flat-rolled steel products, including hot-rolled, cold-rolled, galvanized and painted steel and will include a 555,000-ton-per-year galvanizing line and a paint line with a coating capacity of 250,000 tons per year, to serve the energy, automotive, construction and appliance sectors. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can see the detailed project report.
Steel Dynamics also is planning two coating line additions at the mill, both of which will feature a 300,000-ton galvanizing line and a 240,000-ton paint line. Completion is expected in September 2022, although Industrial Info is tracking these projects with a medium probability (70% to 80%) of moving forward as scheduled. For more information, subscribers can see Industrial Info's detailed project reports on addition no. 1 and addition no. 2.
Steel production at the facility is not expected to begin until mid-fourth quarter; the company currently has 13 million tons of steel capacity, according to the second-quarter earnings conference call. When fully online, the mill will add 6 million tons of capacity.
Also in the works are two $100 million coating line additions at its flat-rolled steel minimill in Butler, Indiana; these lines would mirror the two coating line additions at Sinton. For more information, subscribers can see Industrial Info's detailed project reports on addition no. 3 and addition no. 4. Completion is expected in June 2022; however, these projects also have a medium probability of moving forward as scheduled.
The company's first-half capital expenditures (capex) totaled $587 million, $489 million of which was invested in its Sinton mill. Second-half capex is estimated at $350 million to $400 million, including $300 million for the new mill.
Millet said he expects to see sustained success as demand remains high and customer steel inventories stay extremely low, and added, "we believe this momentum will continue throughout the year and that our third quarter 2021 earnings could represent another record performance."
Other major U.S. steelmakers, such as Nucor Corporation (NYSE: NUE) (Charlotte, North Carolina), United States Steel Corporation (NYSE:X) (Pittsburgh, Pennsylvania) and Cleveland-Cliffs Incorporated (NYSE:CLF) (Cleveland, Ohio), expect to also report positive second-quarter earnings. For more information, see June 22, 2021, article - Top U.S. Steel Producers Expect Surge in Second-Quarter Earnings Results.
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.
Demand for steel remained high during the second quarter, while historically low customer inventories supported the upward trajectory for the company's product prices, according to Mark Millet, Steel Dynamics' chairman and chief executive officer. "Higher steel selling values drove significant metal spread expansion across the entire platform and were most prominent within the flat roll steel operations," he said on the company's second-quarter earnings call on Tuesday.
Steel Dynamics saw record second-quarter operating income of $956 million, up 61% from the first quarter, and record net income of $702 million -- an increase from $75 million year-over-year. Net sales for the most recent quarter also reached an all-time high, $4.5 billion, compared with $2.1 billion in the same period a year earlier.
For the second quarter, the company's average per-ton sales price for steel was $1,292 per ton, up from $755 per ton in second-quarter 2020. The steel and fabrication sectors saw record quarterly shipments of 2.9 million tons and 189,000 tons, respectively, and the fabrication sector ended June with a record order backlog, according to the company's latest earnings release.
Adjusted earnings before income taxes, interest expenses, depreciation and amortization (EBITDA) also reached a record second-quarter high--of more than $1 billion--excluding the costs associated with the construction of the company's flat-rolled steel mill in Sinton, Texas, which is planned for completion in August.
The facility will produce 3 million tons per year of various flat-rolled steel products, including hot-rolled, cold-rolled, galvanized and painted steel and will include a 555,000-ton-per-year galvanizing line and a paint line with a coating capacity of 250,000 tons per year, to serve the energy, automotive, construction and appliance sectors. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can see the detailed project report.
Steel Dynamics also is planning two coating line additions at the mill, both of which will feature a 300,000-ton galvanizing line and a 240,000-ton paint line. Completion is expected in September 2022, although Industrial Info is tracking these projects with a medium probability (70% to 80%) of moving forward as scheduled. For more information, subscribers can see Industrial Info's detailed project reports on addition no. 1 and addition no. 2.
Steel production at the facility is not expected to begin until mid-fourth quarter; the company currently has 13 million tons of steel capacity, according to the second-quarter earnings conference call. When fully online, the mill will add 6 million tons of capacity.
Also in the works are two $100 million coating line additions at its flat-rolled steel minimill in Butler, Indiana; these lines would mirror the two coating line additions at Sinton. For more information, subscribers can see Industrial Info's detailed project reports on addition no. 3 and addition no. 4. Completion is expected in June 2022; however, these projects also have a medium probability of moving forward as scheduled.
The company's first-half capital expenditures (capex) totaled $587 million, $489 million of which was invested in its Sinton mill. Second-half capex is estimated at $350 million to $400 million, including $300 million for the new mill.
Millet said he expects to see sustained success as demand remains high and customer steel inventories stay extremely low, and added, "we believe this momentum will continue throughout the year and that our third quarter 2021 earnings could represent another record performance."
Other major U.S. steelmakers, such as Nucor Corporation (NYSE: NUE) (Charlotte, North Carolina), United States Steel Corporation (NYSE:X) (Pittsburgh, Pennsylvania) and Cleveland-Cliffs Incorporated (NYSE:CLF) (Cleveland, Ohio), expect to also report positive second-quarter earnings. For more information, see June 22, 2021, article - Top U.S. Steel Producers Expect Surge in Second-Quarter Earnings Results.
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.
