01—Abstract
Summary
Summary of the 8-K filed March 15, 2024. Cited figures are marked; the original filing is the authoritative source.
Steel Dynamics, Inc. (NASDAQ/GS: STLD) furnished a press release under Item 7.01 (Regulation FD) on March 15, 2024, providing first quarter 2024 earnings guidance of $3.51 to $3.55a per diluted share.
The company compares this with sequential fourth quarter 2023 earnings of $2.61b per diluted share and prior year first quarter earnings of $3.70 per diluted share. By segment, the company expects first quarter 2024 steel operations earnings to be meaningfully stronger than fourth quarter results, driven by increased shipments and earnings across the platform, including improved performance at the Sinton Texas Flat Roll Division. Metals recycling earnings are expected to be higher than fourth quarter, on substantially stronger realized product pricing and increased volume.
Steel fabrication earnings are expected to be historically strong but lower than fourth quarter, due to seasonally lower shipments and metal spread contraction. The company states that automotive, non-residential construction, energy, and industrial sectors continue to lead demand. The filing also reports that the company repurchased $279 millionc, or 1.4 percent, of its common stock in the first quarter through March 11, 2024, and that the board increased the first quarter 2024 cash dividend by eight percent to $0.46 per common share.
Steel Dynamics plans to release first quarter 2024 earnings after market close on April 23, 2024, with a conference call the following day at 11:00 a.m. Eastern Daylight Time.
02—Key points
Key Highlights
- First quarter 2024 diluted EPS guidance of $3.51 to $3.55, versus $2.61 in fourth quarter 2023 and $3.70 in first quarter 2023
- Steel operations earnings expected to be meaningfully stronger than fourth quarter 2023, led by flat rolled operations and improved Sinton Texas Flat Roll Division performance
- Metals recycling earnings expected to rise sequentially on substantially stronger realized product pricing and higher ferrous and nonferrous volumes
- Steel fabrication earnings expected to be historically strong but lower sequentially on seasonally lower shipments and metal spread contraction
- Steel joist and deck order backlog extends into the third quarter of 2024 with historically strong associated pricing
- Repurchased $279 million (1.4 percent) of common stock in the first quarter through March 11, 2024
- Quarterly cash dividend increased eight percent to $0.46 per common share
03—Questions
Frequently Asked Questions
What earnings does Steel Dynamics expect for the first quarter of 2024?
The company provided first quarter 2024 earnings guidance in the range of $3.51 to $3.55 per diluted share.
How do the expected first quarter 2024 results compare with recent periods?
The filing compares the guidance with sequential fourth quarter 2023 earnings of $2.61 per diluted share and prior year first quarter earnings of $3.70 per diluted share.
Which business segments are expected to drive results?
Steel operations are expected to be meaningfully stronger than fourth quarter, driven by flat rolled steel and the Sinton Texas Flat Roll Division. Metals recycling is expected to be higher on stronger pricing and volume. Steel fabrication is expected to be historically strong but lower sequentially due to seasonality and metal spread contraction.
What capital return actions did the company take or announce?
The company repurchased $279 million, or 1.4 percent, of its common stock during the first quarter through March 11, 2024, and increased its first quarter 2024 cash dividend by eight percent to $0.46 per common share.
When will the company report first quarter 2024 results?
Steel Dynamics plans to release first quarter 2024 earnings after the markets close on Tuesday, April 23, 2024, and will hold a conference call on April 24, 2024 at 11:00 a.m. Eastern Daylight Time.
04—Continue