FORT WAYNE, Ind. - Steel Dynamics , Inc. (NASDAQ:STLD), a major American steel producer and metal recycler, has forecasted an increase in its first-quarter earnings for 2024. The company anticipates earnings to be in the range of $3.51 to $3.55 per diluted share, an uptick from the $2.61 per diluted share reported in the fourth quarter of 2023, but slightly below the $3.70 per diluted share from the same quarter last year.
The improved guidance is attributed to stronger performance in the company's steel operations, particularly its flat rolled steel segment, which includes the Sinton Texas Flat Roll Division. Steel Dynamics highlighted increased shipments and earnings, with demand led by the automotive, non-residential construction, energy, and industrial sectors.
Additionally, the company's metals recycling operations are expected to report higher earnings than the previous quarter, driven by significantly better product pricing and increased volumes of both ferrous and nonferrous materials.
While Steel Dynamics' steel fabrication operations are set to deliver historically strong earnings, they are projected to be lower than the sequential fourth quarter due to seasonal shipment reductions and a narrowing metal spread caused by declining pricing and rising steel input costs. Nevertheless, the non-residential construction sector remains robust, supported by a solid steel joist and deck order backlog extending into the third quarter of 2024.
Reflecting confidence in its earnings outlook and cash generation, Steel Dynamics has repurchased $279 million or 1.4 percent of its common stock through March 11, 2024. The board has also raised the first-quarter cash dividend by eight percent to $0.46 per common share.
The company's first-quarter earnings will be made public after the market closes on April 23, 2024, followed by a conference call on the next day at 11:00 a.m. Eastern Daylight Time.
Steel Dynamics is recognized as one of the largest steel producers and metals recyclers in North America, with a diverse product portfolio and operations across the United States and Mexico.
This article is based on a press release statement, which contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those anticipated.
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