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Flat Roll Steel Demand Helps Steel Dynamics (STLD) Post Record Third-Quarter Results

Tuesday, October 19, 2021 08:47 AM | Carl Pettit
Flat Roll Steel Demand Helps Steel Dynamics (STLD) Post Record Third-Quarter Results

Steel Dynamics (STLD) posted its third quarter 2021 financial results Oct. 18. Flat roll steel demand along with strong domestic steel consumption helped the company post record third quarter net sales of $5.1 billion. Before market open today, STLD shares increased 2.05%.

Steel Dynamics Third Quarter 2021 Results

Steel Dynamics reported 2021 third quarter net sales of $5.1 billion and net income of $991 million ($4.85 per diluted share). 2020 third quarter net sales were $2.3 billion, with a net income of only $100 million. The firm also reported $338 million in share repurchases (3% of outstanding shares).

Texas Flat Roll Steel Mill Construction

Third quarter 2021 adjusted net income was $1.0 billion, or $4.96 per diluted share adjusted to remove costs associated with the construction of the Sinton Texas Flat Roll Steel Mill. The mill’s cost impact was “$0.04 per diluted share/costs of approximately $30 million, or $0.11 per diluted share (net of capitalized interest).”

CEO Comments

According to the company, “record flat roll and strong long product steel realized selling values more than offset higher scrap input costs.”

CEO Mark D. Millett, said, “During the third quarter, steel demand remained strong as product pricing continued its positive trajectory across our entire steel platform. Higher realized steel selling values drove significant metal spread expansion and were again most prominent within our flat roll steel operations, as continued demand strength and low customer inventories persisted throughout the supply chain and supported prices.”

Looking Forward

Millett said the company expects demand for steel to remain strong into 2022. He predicted that high demand and low customer inventories will keep prices high enough that the fourth quarter will likely be another record for the company.



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