Steel Dynamics Reports First Quarter 2019 Results

About this update from Steel Dynamics, Inc.

[{"type":"text","content":" FORT WAYNE, Ind., April 22, 2019 /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced first quarter 2019 financial results. The company reported first quarter 2019 net sales of $2.8 billion and net income of $204 million, or $0.91 per diluted share. \nComparatively, prior year first quarter net income was $228 million, or $0.96 per diluted share, with net sales of $2.6 billion. Sequential fourth quarter 2018 net income was $270 million, or $1.17 per diluted share, which included additional company-wide performance-based compensation of $0.04 per diluted share and lower earnings of $0.10 per diluted share, associated with planned maintenance outages at the company's liquid pig iron production facility and its two flat roll steel mills. Excluding these items, the company's fourth quarter adjusted net income was $302 million, or $1.31 per diluted share. \n\"The team delivered a strong first quarter performance in a somewhat challenging flat roll steel pricing environment,\" said Mark D. Millett, President and Chief Executive Officer. \"A downward trend in flat roll steel prices began in the second half of 2018, and continued through mid-first quarter 2019, reaching an inflection point in February 2019. The teams were able to increase shipments and offset some of the margin compression, resulting in first quarter 2019 consolidated operating income of $292 million and adjusted EBITDA of $382 million. The continued stabilization and improvement in flat roll steel prices are having a positive impact, resulting in increased flat roll order activity and solid order backlogs. We are seeing continued strength in the automotive, energy and industrial sectors, and as evidenced by strong steel fabrication backlogs, strength in non-residential construction.\" \nThe company generated cash flow from operations of $182 million during the first quarter 2019 and maintained liquidity of $2.2 billion at March 31, 2019. On March 1, 2019, the company used available cash of $93 million to fund the purchase of a 75 percent controlling interest of United Steel Supply, a leading distributor of painted Galvalume® flat roll steel used for roofing and siding applications. \nAs evidence of the confidence in the company's sustainable long-term cash flow generation capability, the board of directors approved a 28 percent increase in the compan...

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