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Mar 31, 2021
Steel Dynamics Q1 2021 Earnings Report
Reported record first quarter results driven by strong steel demand and higher prices.
Key Takeaways
Steel Dynamics reported record first quarter 2021 results, with net sales of $3.5 billion and net income of $431 million, or $2.03 per diluted share. The company's performance was driven by strong steel demand and higher flat roll steel selling values.
Achieved record quarterly net sales, operating income, and adjusted EBITDA.
Operating income from steel operations was a record $641 million.
Metals recycling operations nearly doubled their earnings sequentially.
Steel fabrication operations achieved record quarterly shipments and a record order backlog.
Revenue by Segment
Forward Guidance
The company believes that market conditions are in place to benefit the domestic steel industry in 2021 and beyond, and that their second quarter 2021 earnings will be even higher than their record first quarter 2021 results.
Positive Outlook
- Strong steel demand coupled with extremely low customer steel inventory.
- Order entry continues to be robust across our businesses.
- U.S. trade policies and existing steel trade cases will continue to moderate steel imports.
- Strategic growth initiatives provide firm drivers for further growth.
- Construction of the Sinton Texas Flat Roll Steel Mill is progressing well.
Challenges Ahead
- Global economies are still recovering from the shock of COVID-19.
- Automotive sector has experienced the electronic chip shortage.
- Significantly higher steel input costs.
- Timing of matching a six-month backlog to more current higher-priced steel inputs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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