Fort Wayne-based Steel Dynamics Inc. (Nasdaq: STLD) is reporting first quarter net income of $201 million, up from $63 million during the same period the previous year. Chief Executive Officer Mark Millett says the increase is primarily due to growth in the company’s flat roll operations.
Millett says all of the company’s operating platforms improved profitability during the quarter.
"We also experienced increased shipments from our long product steel divisions. Steel demand from the automotive sector remained steady and construction continued to improve," said Millett. "Operating income from our metals recycling platform more than doubled in the first quarter 2017, as domestic steel mill utilization increased, strengthening both ferrous scrap shipments and metal spread. Additionally, in what is typically a seasonally lower demand timeframe for our fabrication operations, the team achieved record quarterly shipments and improved earnings, a strong indicator that the non-residential construction market is continuing a positive growth profile."
Millett says the company believes conditions are in place to benefit the domestic steel industry over the next year, including additional growth in the construction sector, specifically for larger, public sector infrastructure projects.