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Mar 31, 2020
Steel Dynamics Q1 2020 Earnings Report
Reported strong first quarter performance despite challenging market conditions, achieving record steel shipments.
Key Takeaways
Steel Dynamics reported a strong first quarter 2020 performance with net sales of $2.6 billion and net income of $187 million, or $0.88 per diluted share. The company achieved record quarterly steel shipments, driven by solid underlying steel demand and value-added product capabilities.
Achieved record quarterly steel shipments.
Consolidated operating income was $274 million with adjusted EBITDA of $356 million.
Generated strong cash flow from operations of $211 million and maintained strong liquidity of over $2.6 billion.
Repurchased $107 million of common stock during the first quarter of 2020.
Steel Dynamics
Steel Dynamics
Steel Dynamics Revenue by Segment
Revenue by Segment
Steel Operations Revenue
CapyFin.comSteel Fabrication Revenue
CapyFin.comMetals Recycling Revenue
CapyFin.com Forward Guidance
The full scope of the negative impact of COVID-19 on global economies and domestic steel demand is still uncertain. The company believes steel demand will likely respond quickly when states begin to "re-open".
Positive Outlook
- The company entered the crisis in a position of strength with ample cash and available liquidity.
- The company's differentiated business model and performance-driven culture has proven its ability to generate strong cash flow during challenging times.
- Construction is the largest single domestic steel consuming sector and remains intact.
- Steel order activity from construction customers is strong.
- The steel fabrication order backlog is strong.
Challenges Ahead
- The full scope of the negative impact COVID-19 will cause to global economies and the related impact to domestic steel demand is still uncertain.
- Domestic steel orders related to certain sectors have slowed considerably due to the temporary closures of numerous steel consuming businesses.
- The temporary closure of domestic automotive production and its related supply chain have reduced flat roll steel demand.
- Weakness in the energy sector has reduced flat roll steel demand.
- Some construction projects have been disrupted or postponed.
Revenue & Expenses
Visualization of income flow from segment revenue to net income