Press release
Steel Dynamics Provides Fourth Quarter 2022 Earnings Guidance
FORT WAYNE, Ind., Dec. 15, 2022 /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) today provided fourth quarter 2022 earnings guidance in the range of
About this update from Steel Dynamics, Inc.
[{"type":"text","content":"FORT WAYNE, Ind., Dec. 15, 2022 /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) today provided fourth quarter 2022 earnings guidance in the range of $3.34 to $3.38 per diluted share. Excluding the impact from the following items, the company expects fourth quarter 2022 adjusted earnings to be in the range of $4.10 to $4.14 per diluted share.\nAdditional performance-based companywide special compensation of $24 million, or $0.10 per diluted share, awarded to all non-executive, eligible team members in recognition of the company's exceptional record annual performance.Costs of approximately $167 million, or $0.66 per diluted share, associated with startup of the company's Sinton Texas Flat Roll Steel Division (Sinton).The company also expects to realize a benefit of approximately $17 million, or $0.10 per diluted share, related to state and federal prior year return to provision reconciliations.\nComparatively, the company's sequential third quarter 2022 earnings were $5.03 per diluted share, and adjusted earnings were $5.46 per diluted share excluding costs of $0.43 per diluted share, associated with startup of Sinton. Prior year fourth quarter earnings were $5.49 per diluted share and adjusted earnings were $5.78 per diluted share, excluding costs associated with construction of Sinton of $0.18 per diluted share, additional performance-based companywide special compensation of $0.08 per diluted share, and a contribution to the company's charitable foundation of $0.04 per diluted share.\nFourth quarter 2022 profitability from the company's steel operations is expected to be significantly lower than sequential third quarter results, based on seasonally lower shipments and metal spread compression, particularly within the flat roll operations. Metal spread compression was amplified by higher raw material costs, as the flat roll operations work through higher than current market priced pig iron inventories ordered in early 2022 in reaction to the Ukraine and Russia supply chain disruptions. The company believes flat roll steel prices have bottomed and expects them to increase into 2023 as underlying steel demand and corresponding order activity remain intact from the automotive, non-residential construction, industrial, and energy sectors with some weakness in the residential sector.\nAs ferrous and nonferrous scrap prices ha...