Steel Dynamics, Inc. announced second quarter 2023 financial results, including net sales of $5.1 billion and net income of $812 million.
Comparatively, the company's sequential first quarter 2023 net income was $637 million, and prior year second quarter net income was $1.2 billion.
In a press release, the company said second quarter 2023 operating income for its steel operations was $706 million, as shipments remained steady at 3.2 million tons and significantly higher realized steel pricing more than offset increased scrap costs.
The company's Sinton Texas Flat Roll Division operated at a utilization rate comparable to the sequential first quarter and achieved positive EBITDA for the second quarter 2023. The company expects the Texas division to be operating at an 80 percent utilization rate by the end of 2023, as it steadily ramps production during the second half of this year.
Second quarter operating income from the company's metals recycling operations remained steady at $40 million, as increased ferrous shipments totaling 1.5 million gross tons was offset by metal spread compression. Ferrous scrap demand was supported by modestly higher domestic steel production utilization of over 76 percent in the second quarter 2023, SDI said.
The company said its steel fabrication operations achieved historically strong operating income of $462 million in the second quarter 2023, but below first quarter results, based on metal spread compression as lower realized selling values were combined with steady steel substrate costs and product shipments.
The company said it believes second half 2023 steel joist and deck shipments will be comparable to first half 2023 volumes. The order backlog currently reaches into 2024 with strong forward-pricing. In addition, the company believes that the continued onshoring of manufacturing, coupled with the robust US infrastructure and Inflation Reduction Act programs, combined with industrial build-outs, supports strong demand in the coming years.