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Steel Dynamics Inc. (NASDAQ: STLD), founded in 1993, stands out as a unique entity among American steel companies. Headquartered in Fort Wayne, Indiana, the company commenced production at its Butler, IN, flat roll mill in 1996, which remains a leader in flat roll steel production.
The company’s core operations encompass several segments:
- Steel Operations: Produces hot roll, cold roll, and coated sheet steel, structural beams, rail, engineered special-bar-quality steel, and more, with an annual production capacity of roughly 16 million tons.
- Metals Recycling Operations: Processes and sells ferrous and nonferrous scrap, playing a crucial role in the company’s scrap-based steel minimills.
- Steel Fabrication Operations: Includes New Millennium Building Systems, which produces joists, girders, and decking for nonresidential construction across six U.S. and Mexican facilities.
- Aluminum Operations Segment: A relatively new venture, aiming to diversify into the aluminum flat rolled products market by mid-2025.
Steel Dynamics has shown consistent growth through strategic investments and acquisitions. Recent achievements include record annual shipments in 2023 and the launch of a state-of-the-art electric arc furnace flat rolled steel mill in Texas. Additionally, the company is focusing on sustainability with biocarbon production and renewable energy agreements.
Financially, Steel Dynamics reported 2023 net sales of $18.8 billion and a net income of $2.5 billion. The company maintains strong liquidity with over $3.5 billion in cash flow from operations, supporting continued expansion and shareholder returns through dividends and share repurchases.
The outlook for 2024 remains positive, driven by robust demand from the construction, automotive, energy, and industrial sectors, coupled with the benefits of onshoring manufacturing and public infrastructure investments.
Steel Dynamics, Inc. (STLD), a prominent U.S. steel producer, announced its inclusion in the S&P 500® Index, effective December 22, 2022. This recognition is a significant milestone for the company, reflecting its growth and performance in the steel industry. CEO Mark D. Millett expressed pride in the company's commitment to excellence and thanked stakeholders for their support. Steel Dynamics operates numerous facilities in the U.S. and Mexico, producing a variety of steel products and metals recycling capabilities, reinforcing its position as a key player in the domestic market.
Steel Dynamics (STLD) has released its fourth quarter 2022 earnings guidance, projecting earnings between $3.34 to $3.38 per diluted share. Adjusted earnings are expected to range from $4.10 to $4.14 per diluted share, considering a $24 million special compensation and $167 million costs for the Sinton Texas facility startup. Sequentially, earnings are anticipated to decline from $5.03 per share in Q3 2022, attributed to lower shipments and metal spread compression. However, steady demand in key sectors could strengthen future pricing.
Steel Dynamics, Inc. (NASDAQ: STLD) announced a new share repurchase program of up to $1.5 billion, building on the remaining $245 million from a previous $1.25 billion program. Since 2017, the company has repurchased $3.7 billion of its shares, equating to 33% of outstanding stock. Additionally, a quarterly cash dividend of $0.34 per common share has been declared, payable on or about January 13, 2023. This demonstrates management's commitment to shareholder value creation through consistent cash flow and strategic growth.
Steel Dynamics (STLD) has selected Columbus, Mississippi for its first biocarbon production facility in partnership with Aymium. This site is strategically located near one of STLD's major steel mills and fiber raw materials. The facility aims to reduce greenhouse gas emissions by 20-25% and will produce over 160,000 metric tons of biocarbon annually, with operations starting in early 2024. The initiative is expected to create 40 high-paying jobs and underscores the company's commitment to sustainability and carbon neutrality.
Steel Dynamics announced the selection of Columbus, Mississippi for its new recycled aluminum flat rolled mill. This $1.9 billion investment aims for an annual output of 650,000 tonnes and is expected to create 700 direct jobs and over 250 indirect jobs. The location offers logistical advantages such as proximity to rail and highways, a skilled workforce, and abundant renewable energy. Operations are projected to commence in mid-2025, enhancing Steel Dynamics' portfolio in the aluminum market and supporting sustainability through recycled materials.
Steel Dynamics plans to release its Third Quarter 2022 financial results after market close on October 19, 2022, with a teleconference scheduled for 11:30 a.m. Eastern Daylight Time on October 20, 2022. The call will feature CEO Mark D. Millett and CFO Theresa E. Wagler. Participants can join by dialing +1.973.528.0011 or via the company's website. A replay of the call will be available until October 26, 2022.
Steel Dynamics reported a strong third quarter for 2022, achieving record steel shipments of 3.2 million tons and net sales of $5.7 billion, resulting in a net income of $914 million, or $5.03 per diluted share. Adjusted net income was $992 million, or $5.46 per diluted share. The company experienced a decline in operating income within its steel operations due to metal spread compression, despite excellent performance in steel fabrication, which recorded operating income of $677 million. Cash flow from operations reached a record $1.5 billion, bolstering investor confidence.
Steel Dynamics (STLD) has completed the acquisition of ROCA ACERO S.A. de C.V., a scrap metals recycling business, following regulatory approvals. This acquisition enhances Steel Dynamics' position in the Southwest U.S. and Mexico, strengthening its raw material procurement and operational capabilities. ROCA operates five processing facilities with an annual shipping capacity of approximately 575,000 gross tons, further augmenting Steel Dynamics' total scrap processing capacity to over 2.5 million gross tons. The transaction aligns with Steel Dynamics' growth strategy in the metals processing sector.
Steel Dynamics, Inc. (NASDAQ: STLD), a leading U.S. steel producer and metals recycler, will release its Third Quarter 2022 financial results post-market on October 19, 2022. A teleconference hosted by Chairman Mark D. Millett and CFO Theresa E. Wagler is scheduled for 11:30 a.m. EDT on October 20, 2022. Participants can join by dialing +1.973.528.0011 or via the company’s website for a listen-only mode. An audio replay will be available until October 26, 2022. For more details, visit www.steeldynamics.com.
Steel Dynamics (NASDAQ: STLD) has successfully acquired ROCA ACERO, enhancing its raw material procurement strategy in North America. The acquisition, funded with available cash, positions Steel Dynamics to increase its scrap processing capacity in Mexico to over 2.5 million gross tons annually. ROCA, based in Monterrey, operates five scrap processing facilities and currently ships around 575,000 gross tons of scrap annually. This strategic move is expected to provide a competitive edge in steel operations and improve customer offerings in both Mexico and the United States.
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