Steel Dynamics first-quarter profit beats estimates on strong demand

Kitco Media
By Reuters
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Updated:
Reuters
April 19 (Reuters) - Steel Dynamics Inc beat estimates for quarterly profit on Wednesday, driven by strong industrial demand for steel products. Demand for steel from sectors such as auto, energy and non-residential construction has powered results of steel makers at a time when shortages due to supply-chain disruptions persist. "Order entry activity continues to be strong across all of our businesses. We believe North American steel consumption will increase in 2023, and that demand for lower-carbon emission, U.S. produced steel products coupled with lower imports will support steel pricing," CEO Mark Millett said. The company's primary sources of revenue are from the manufacture and sale of steel products, the processing and sale of recycled ferrous and non-ferrous metals, and the fabrication and sale of steel joists and deck products. First-quarter profit fell 42% to $637.3 million as supply snags and inflationary pressures drove up costs. On an adjusted basis, however, Steel Dynamics reported a profit of $4.01 per share, beating average analysts' expectation of $3.52 per share, according to Refinitiv data. Revenue was $4.89 billion, compared with expectations of $5 billion. (Reporting by Amna Karimi and Abhijith Ganapavaram in Bengaluru; Editing by Anil D'Silva)

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