Steel Dynamics Announces Additional $1.5 Billion Share Repurchase Authorization and Fourth Quarter 2023 Cash Dividend

Rhea-AI Summary

Steel Dynamics, Inc. (NASDAQ/GS: STLD) has authorized an additional share repurchase program of $1.5 billion, bringing the total repurchase program to $3 billion. The company has repurchased $5.2 billion of its common stock since 2017, representing 36% of its outstanding shares. They have also declared a quarterly cash dividend of $0.425 per common share.

FORT WAYNE, Ind., Nov. 3, 2023 /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced that the company's board of directors authorized an additional share repurchase program of $1.5 billion of the company's common stock. The authorization is effective immediately and is additive to the previous $1.5 billion program, which had $278 million remaining authorized and available for repurchase on September 30, 2023.  Since 2017, the company has repurchased $5.2 billion of its common stock, representing 36 percent of its outstanding shares, and has paid cash dividends of $1.4 billion through September 30, 2023.

"These actions reflect the Board's and senior leadership's continued confidence in our ability to consistently generate industry-leading strong free cash flow throughout all market environments," stated Mark D. Millett, Chairman and Chief Executive Officer. "We are committed to delivering shareholder value creation through profitable growth. We believe the strength of our operating model, capital structure, and liquidity profile provide us the unique ability to strategically grow, while also returning value to our shareholders."

Under the company's share repurchase program, purchases take place as and when determined by the company in open market or private transactions, including transactions that may be affected pursuant to Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. Pursuant to this program, purchases of shares of the company's common stock, are made based upon the market price of the company's common stock, the nature of other investment and growth opportunities, expected free cash flow, and general economic conditions.  The share repurchase program does not require the company to acquire any specific number of shares and may be modified, suspended, extended or terminated by the company at any time without prior notice. 

Dividends

The company's board of directors also declared a quarterly cash dividend of $0.425 per common share.  The dividend is payable to shareholders of record at the close of business on December 31, 2023, and is payable on or about January 16, 2024.

About Steel Dynamics, Inc.

Steel Dynamics is one of the largest domestic steel producers and metals recyclers in North America, based on estimated annual steelmaking and metals recycling capability, with facilities located throughout the United States, and in Mexico. Steel Dynamics produces steel products, including hot roll, cold roll, and coated sheet steel, structural steel beams and shapes, rail, engineered special-bar-quality steel, cold finished steel, merchant bar products, specialty steel sections, and steel joists and deck. In addition, the company produces liquid pig iron and processes and sells ferrous and nonferrous scrap.

Forward-Looking Statements

This report contains some predictive statements about future events, including statements related to conditions in domestic or global economies, conditions in steel, aluminum, and recycled metals market places, Steel Dynamics' revenues, costs of purchased materials, future profitability and earnings, and the operation of new, existing or planned facilities. These statements, which we generally precede or accompany by such typical conditional words as "anticipate", "intend", "believe", "estimate", "plan", "seek", "project", or "expect", or by the words "may", "will", or "should", are intended to be made as "forward-looking", subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These statements speak only as of this date and are based upon information and assumptions, which we consider reasonable as of this date, concerning our businesses and the environments in which they operate. Such predictive statements are not guarantees of future performance, and we undertake no duty to update or revise any such statements. Some factors that could cause such forward-looking statements to turn out differently than anticipated include: (1) domestic and global economic factors; (2) global steelmaking overcapacity and imports of steel, together with increased scrap prices; (3) pandemics, epidemics, widespread illness or other health issues, such as COVID-19 or its variants; (4) the cyclical nature of the steel industry and the industries we serve; (5) volatility and major fluctuations in prices and availability of scrap metal, scrap substitutes and supplies, and our potential inability to pass higher costs on to our customers; (6) cost and availability of electricity, natural gas, oil, or other energy resources are subject to volatile market conditions; (7) increased environmental, greenhouse gas emissions and sustainability considerations or regulations; (8) compliance with and changes in environmental and remediation requirements; (9) significant price and other forms of competition from other steel and aluminum producers, scrap processors and alternative materials; (10) availability of an adequate source of supply of scrap for our metals recycling operations; (11) cybersecurity threats and risks to the security of our sensitive data and information technology; (12) the implementation of our growth strategy; (13) litigation and legal compliance; (14) unexpected equipment downtime or shutdowns; (15) governmental agencies may refuse to grant or renew some of our licenses and permits; (16) our senior unsecured credit facility contains, and any future financing agreements may contain, restrictive covenants that may limit our flexibility; and (17) the impacts of impairment charges.

More specifically, we refer you to our more detailed explanation of these and other factors and risks that may cause such predictive statements to turn out differently, as set forth in our most recent Annual Report on Form 10-K under the headings Special Note Regarding Forward-Looking Statements and Risk Factors, in our Quarterly Reports on Form 10-Q, or in other reports which we file with the Securities and Exchange Commission. These reports are available publicly on the Securities and Exchange Commission website, www.sec.gov, and on our website, www.steeldynamics.com under "Investors – SEC Filings."

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SOURCE Steel Dynamics, Inc.

FAQ

What is the latest announcement from Steel Dynamics, Inc.?

Steel Dynamics, Inc. has authorized an additional share repurchase program of $1.5 billion.

What is the total value of Steel Dynamics' share repurchase program now?

The total value of Steel Dynamics' share repurchase program is now $3 billion.

How much of its common stock has Steel Dynamics repurchased since 2017?

Steel Dynamics has repurchased $5.2 billion of its common stock since 2017, representing 36% of its outstanding shares.

What is the amount of the quarterly cash dividend declared by Steel Dynamics?

Steel Dynamics has declared a quarterly cash dividend of $0.425 per common share.

When will the dividend be payable?

The dividend will be payable to shareholders of record on December 31, 2023.

What is the record date for the dividend?

The record date for the dividend is December 31, 2023.