Steel Dynamics Details 'Challenging' Quarter

Posted: Updated:
The company has 7,600 employees, most of which are located throughout the U.S. The company has 7,600 employees, most of which are located throughout the U.S.

Fort Wayne-based Steel Dynamics Inc. (Nasdaq: STLD) has announced a third quarter net income of $61 million, compared to $91 million during the same quarter a year earlier. Chief Executive Officer Mark Millett says the steel and metals recycling markets continue to be "challenging" due to pressures from foreign imports and pricing.

The company says U.S. steel consumption remained steady in the quarter and steel imports "continued to flood" the market.

A high point for the company was its fabrication operations, which Steel Dynamics says achieved record financial performance with a third quarter operating income of $37 million. That total bested the previous record by 33 percent.

Metal recycling operations were off more than $11.5 million, coming in at $463,000.

Millett adds "ongoing pressure from steel imports remains high, negatively impacting steel pricing and domestic steel production, resulting in industry utilization not fully reflecting the actual strength in U.S. steel consumption. The automotive market remains strong and construction continues its steady improvement. However, customer steel inventories remain at elevated levels and when combined with further declining scrap prices, have resulted in hesitant ordering. As scrap prices stabilize at these lower levels and steel inventories moderate to more normalized quantities into 2016, we believe domestic steel production should improve."

The company also noted the impact from the recent idling of its Minnesota operations.

You can connect to the company's full quarterly earnings release by clicking here.

  • Perspectives

    • How to Find a New Audience After Hitting a Marketing Plateau

      It may sound like a marketer’s dream scenario: efforts have proven to be so successful it appears a company has completely saturated their target audience. While it may be a good problem to have, it still may be a problem. Hitting a marketing plateau is an opportunity for companies in any industry to reevaluate, re-energize and come to the table with new ideas for better understanding existing customers and engaging new audiences.



  • Most Popular Stories

    • (photo courtesy of WTHR-TV)

      Andrew Luck Retiring from NFL

      In a shocking development following the Indianapolis Colts' preseason loss to the Chicago Bears, quarterback Andrew Luck has announced his retirement from the NFL. Luck, who did not play in Saturday's game, said the number of injuries he has suffered throughout his professional career "has taken my joy of this game away." Luck teared up during a news conference in which he made his announcement. "After 2016 where I played in pain and was unable to regularly...

    • (image courtesy of The Times of Northwest Indiana)

      Crews Start Demolition of Carson's in Hammond

      The face of downtown retail in Hammond is changing once again with the demolition of Carson’s department store, the one-time the anchor of Woodmar Mall. Our partners at The Times of Northwest Indiana report excavating crews have started to demolish the last vestige of the shopping center which stood since the 1950s. 

    • Shaina Keck

      Pier 48 Manager Named

      FK Restaurant Group has named Shaina Keck sales and banquet manager for Pier 48 Fish House and Bar in downtown Indianapolis. She previously served in sales at Kilroy's Bar & Grill. Keck is a graduate of Indiana University Kelly School of Business with a bachelor of science degree in finance and accounting with a concentration in international studies.  
    • On-Air

      Find out when and where you can watch and listen to our reports.

    • Fort Wayne Tops 'Hottest Real Estate Markets'

      Fort Wayne just opened its brand new riverfront Promenade Park to pomp and pageantry, hoping to make it a draw to Indiana’s second largest city. But now the Allen County community has something else to celebrate. The editors of declared Fort Wayne as the hottest real estate market in July for the entire country.