Press release
Steel Dynamics Provides First Quarter 2023 Earnings Guidance
FORT WAYNE, Ind., March 15, 2023 /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) today provided first quarter 2023 earnings guidance in the range of
About this update from Steel Dynamics, Inc.
[{"type":"text","content":"FORT WAYNE, Ind., March 15, 2023 /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) today provided first quarter 2023 earnings guidance in the range of $3.47 to $3.51 per diluted share. Excluding the impact from costs associated with the startup of the company's Sinton Texas Flat Roll Steel Mill growth investment of an estimated $78 million, or $0.31 per diluted share, the company expects first quarter 2023 adjusted earnings to be in the range of $3.78 to $3.82 per diluted share.\nComparatively, the company's sequential fourth quarter 2022 earnings were $3.61 per diluted share, and adjusted earnings were $4.37 per diluted share excluding additional performance-based companywide special compensation of approximately $0.09 per diluted share (awarded to all non-executive, eligible team members in recognition of the company's exceptional annual performance) and costs of $0.67 per diluted share associated with startup of the company's Texas Flat Roll Steel Mill. Prior year first quarter earnings were $5.71 per diluted share and adjusted earnings were $6.02 per diluted share, excluding costs of $0.31 per diluted share, associated with construction and startup of the company's Texas Flat Roll Steel Mill.\nFirst quarter 2023 profitability from the company's steel operations is expected to be meaningfully stronger than sequential fourth quarter results, based on increased shipments across the platform more than offsetting metal spread compression as average realized selling values associated with lagging indexed-contracts declined in the quarter. Steel pricing has since strengthened in the first quarter, and steel producer lead times have extended as steel demand is strong. The automotive, non-residential construction, energy, and industrial sectors continue to lead demand. Included in the company's first quarter 2023 guidance estimate and as previously discussed, the first quarter 2023 steel earnings are expected to be negatively impacted by an estimated $64 million, or $0.26 per diluted share, as the steel mills work through the higher-cost pig iron that was purchased earlier in 2022 during the early stages of Russia's invasion of Ukraine.\nFirst quarter 2023 earnings from the company's metals recycling operations are also expected to be significantly higher than sequential fourth quarter results, based on substantially stronger me...