Steel Dynamics, a steel producer based in Fort Wayne, Ind., experienced a decline in earnings and revenue in the fourth quarter of last year. The company’s profit dropped to $424.3 million from $634.9 million compared to the same quarter a year earlier. Despite this decrease, the quarterly earnings of $2.61 per share were in line with analyst forecasts.
Sales also saw a decline, falling to $4.23 billion from $4.83 billion in the year-ago quarter. However, this figure was slightly higher than the expected $4.22 billion, as indicated by analysts surveyed by FactSet.
The average selling price for the company’s steel operations in the fourth quarter saw a sequential drop of $101 per ton to $1,090. Additionally, the average cost per ton of ferrous scrap melted at its steel mills decreased by $12 to $393.
Looking ahead, Steel Dynamics is optimistic about increased demand across its operating platforms in 2024. Chairman and Chief Executive, Mark Millett, stated that steel pricing has firmed up and customer order entry activity remains solid. The company anticipates steady demand and historically low customer inventories.
In conclusion, Steel Dynamics’ fourth-quarter earnings and revenue were lower than the previous year due to declining steel selling prices. Nevertheless, the company remains positive about increased demand and expects a favorable market outlook for 2024.