Fort Wayne-based Steel Dynamics Inc. (Nasdaq: STLD) is reporting first quarter net income of $62.7 million, compared to $30.8 million during the same period last year. Chief Executive Officer Mark Millett says "we are optimistic, as domestic steel industry dynamics seem to be shifting favorably."
He says the market conditions include "moderated" customer inventory levels and declining imports from foreign producers. "When combined with steady underlying steel demand, the result has been some improvement in domestic steel producer utilization, yet industry utilization still remains below historical performance due to the issue of unfairly traded steel imports." Millett adds "we continue to strengthen our financial position through strong cash flow generation and the execution of our long-term strategy. We also have additional earnings catalysts, including macro-industry improvements and several others which are company specific. We are well-positioned for growth."
The company says it had net sales of $1.7 billion in the first quarter and is touting record liquidity ($2.2 billion) at the end of last month.
Steel dynamics is coming off a 2015 annual loss amid continued difficulties for domestic producers competing in the global steel market. You can connect to the first quarter earnings report by clicking here.