Steel Dynamics Makes Leadership Changes, Supports Marshall University Project, More

Steel Dynamics, Inc. (NASDAQ/GS: STLD), one of the largest domestic steel producers and metals recyclers in the United States and a member of the SFIA , is making news, which includes leadership changes, an investment in a Marshall University innovation facility and recent earnings guidance.

Recently, the company announced the transition of Miguel Alvarez to lead the company’s North American Metals Recycling platform. Alvarez’ appointment took effect March 31, 2022.

Russell B. Rinn, the company’s Executive Vice President of Metals Recycling since July 2011, who will retire in July of this year, will remain in a consulting role until his retirement.

Leadership Changes, Anticipated Growth

“Since joining Steel Dynamics over ten years ago, Russ has played a key role as part of our senior leadership team, and has been instrumental in our metals recycling strategy,” said Mark. D. Millett, chairman, president and CEO of Steel Dynamics. “Russ came to us with an already impressive resume within the steel industry, with over 30 years of leadership.”

According to a company news release, Alvarez joined Steel Dynamics in 2019 in a new role as senior vice president for the Southwest U.S. and Mexico regions. 

“In this role, he has gained considerable knowledge of our metals recycling operations and will help us further grow and optimize this platform, as our new Senior Vice President of Metals Recycling,” Millett said. 

Prior to joining Steel Dynamics, Alvarez served in various leadership roles within the steel industry since 2009.

Also effective March 31, 2022, the company promoted James Anderson from his current position as vice president of steel fabrication operations to a senior vice president, retaining the same responsibilities. Anderson has had primary responsibility for the company’s steel fabrication operations since 2019.

“As we look forward, we see meaningful opportunity for Steel Dynamics, our customers, our teams, our communities and our shareholders,” said Millett. “We are excited to continue successfully executing our strategic growth plans with sustainable value creation.”

Photo (l to r): Lance West, vice president for development at the Marshall University Foundation; Chuck Abbott, vice president and general manager at Steel of West Virginia; Steel of West Virginia staff members; Dr. Avinandan Mukherjee, interim provost and senior vice president for Academic Affairs at Marshall University; and Dr. Ron Area, CEO, Marshall University Foundation. Photo credit: Marshall University News

$100,000 Pledged to Innovation Center

In other news, Steel Dynamics Inc. Foundation pledged a gift of $100,000 toward the Brad D. Smith Center for Business and Innovation facility at Marshall University, as reported by HuntingtonNews.net.

According to the report, the facility will serve as a center for the economic development in the region. When completed in January 2024, the Brad D. Smith Center for Business and Innovation will have conference facilities and classrooms and will serve as a student hub on campus.

“The Lewis College of Business at Marshall University has graduated many of our current employees and has proven to be an excellent education provider to the region,” said 

Chuck Abbott, vice president and general manager at Steel of West Virginia, Inc. , which is owned by Steel Dynamics, said the Lewis College of Business at Marshall University has graduated many of his company’s current employees, reported the Herald-Dispatch online.

“Investments in new facilities and equipment will keep those graduates up to date with the ever-changing business world,” said Abbott in a Marshall University news release. “We believe a better-educated workforce creates a stronger economy with higher living standards and more opportunities for everyone to benefit from it, including those less fortunate.”

Earnings Guidance, Strength in Non-Residential Construction

In March, Steel Dynamics provided first quarter 2022 earnings guidance in the range of $5.55 to $5.59 per diluted share. Excluding the impact from costs associated with the startup of the company’s Sinton Texas Flat Roll Steel Mill investment of an estimated $83 million. The company expects first quarter 2022 adjusted earnings to be in the range of $5.85 to $5.89 per diluted share.

First quarter 2022 profitability from the company’s steel operations is expected to be historically strong, but significantly lower than record fourth quarter 2021 results, driven by lower earnings from the company’s flat roll steel operations, as average expected flat roll pricing is expected to decline by more than 10 percent, more than offsetting anticipated higher shipments and lower average scrap prices. 

“Flat roll steel prices have recently firmed with extending lead-times and expectations for further improvements based on higher input costs and global flat roll steel supply disruptions, coupled with a continuing strong demand environment,” the company earnings guidance release said. “The automotive, construction, and industrial sectors continue to lead steel demand.”

First quarter 2022 earnings from the company’s metals recycling operations are expected to be aligned with sequential fourth quarter results, based on improved metal margins offsetting modestly lower volume.

First quarter 2022 earnings from the company’s steel fabrication operations are expected to almost double sequential record fourth quarter results, as significantly higher selling values and strong shipments, more than offset marginally higher steel input costs. In particular, the company news release stated that “the non-residential construction sector remains strong as evidenced by robust order activity, resulting in a historically strong order backlog with record forward-pricing for the company’s steel fabrication platform.”

Additional Resources

• Steel Dynamics Opens $1.9 Billion Next Generation Mill in Texas
• Infographic: The True Sustainability of Steel in Numbers
• A Comprehensive Guide to Steel Framing