https://assets.capyfin.com/instruments/678fdc13234e27009c5d58b8.png avatar
Steel Dynamics
🇺🇸 NASDAQ:STLD
View Company
OverviewEarningsDividends
•
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.

Total Revenue
$2.58B
Previous year: $2.82B
-8.6%
EPS
$0.88
Previous year: $0.91
-3.3%
Steel Ops ASP
$774
Ferrous Metal Shipments
1%
Gross Profit
$415M
Previous year: $434M
-4.2%
Cash and Equivalents
$1.6B
Previous year: $791M
+102.2%
Free Cash Flow
-$6.25M
Previous year: $127M
-104.9%
Total Assets
$8.34B
Previous year: $7.86B
+6.2%

Steel Dynamics

Steel Dynamics

Steel Dynamics Revenue by Segment

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

Company Overview

Full financial data and analysis

View Steel Dynamics