US-based steel producer, Steel Dynamics (SDI), as provided the third quarter 2024 earnings guidance in the range of $1.94 to $1.98 per diluted share. Comparatively, the company’s sequential second quarter 2024 earnings were $2.72 per diluted share, and prior year third quarter earnings were $3.47 per diluted share.
The company expects profitability from its steel operations in the third quarter to be meaningfully lower than sequential second quarter results, based on lower average realized pricing within the flat rolled operations as generally 80 percent of this business is contractually based and tied to lagging pricing indices. Flat rolled steel prices stabilized and improved in the third quarter of 2024 while underlying steel demand remains steady. SDI anticipates its metal recycling operations to be comparable to second quarter sequential results, based on steady volumes offsetting marginally lower realized pricing.
In addition, the company expects its steel fabrication operations to be moderately lower than second quarter results due to an anticipated slight decline in average realized pricing.