Steel Dynamics, Inc. announced second quarter 2024 financial results, including net sales of $4.6 billion and net income of $428 million.
Comparatively, the company's sequential first quarter 2024 net income was $584 million, and prior year second quarter net income was $812 million.
In a press release, the company said second quarter 2024 operating income for its steel operations was $442 million, lower than sequential results, as realized selling values declined more than scrap costs in the quarter.
The company's Sinton Texas Flat Roll Division completed needed changes to gain full access to its melting capacity this week. The company expects the utilization rate to increase from 60 percent for the first half of the year to approximately 75 percent for the second half of 2024, with full availability in 2025.
Second quarter operating income from the company's metals recycling operations increased by 42 percent to $32 million, due to increased demand supporting higher volume and expanded metal spread, while domestic steel production utilization remained steady compared to the sequential first quarter of 2024.
The company said its steel fabrication operations achieved a strong operating income of $181 million in the second quarter 2024. This aligns with the sequential first quarter results of $178 million based on increased volume.
The company believes that the automotive, non-residential construction, and industrial sectors will remain steady this year. The order backlog currently reaches into the fourth quarter of 2024 with historically strong pricing levels. In addition, the company believes that the expectation of significant fixed asset investment to be derived from public funding related to the U.S. Infrastructure, Inflation Reduction Act, and Department of Energy programs, will competitively position the domestic steel industry.
The company has stated that it has produced prime quality galvanized and painted products on all four new value-added flat rolled steel coating lines that began operating earlier this year. The lines will be able to produce 1.1 million mt of value-added steel products in the second half of 2024 and fully in 2025.