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 , was named the Manufacturer of the Year by KPC Media and the Regional Chamber of Northeast Indiana as part of the 2022 Northeast Indiana Manufacturing Awards in an event held virtually on April 29, 2022.
Turning Scrap into “Real-Time Steel”
Lisa Esquivel Long, editor of the Greater Fort Wayne Business Weekly, interviewed Mark D. Millett, SDI chairman, president and CEO, about the company’s founding, its growth and its dedication to green manufacturing.
In the interview posted on YouTube, Millett discussed how last year SDI turned 12 to 13 million tons of scrap metal “into real-time steel” products for multiple industries, including raw materials and finished products for the construction industry.
Sustainability: Woven into the Company Fabric
“Sustainability has been … woven into the fabric of our company since our inception [29] years ago,” Millett said. “It’s just brought definition to us.”
A large part of SDI’s sustainability story is the company’s being a large recycler of scrap material.
“Our carbon footprint is actually 8% of the global average for making making steel,” Millett said.
In addition to recycling scrap material, Millett said the SDI facility in Northeast Indiana has the lowest carbon footprint of any steel producer in the world. He also said that SDI’s facility in Columbus, Mississippi, is supported by hydroelectric power from the Tennessee Valley Authority and is “absolutely one of the the cleanest, environmentally friendly mills in the world.”
“The essence of ESG [Environmental, Social and Governance] is, well, people,” Millett said. “I would hope that we treat our people incredibly well. We reward them for their hard work and their ingenuity.
Steel Dynamics: Record First Quarter 2022 Results
Recently, Steel Dynamics announced its first quarter 2022 financial results.
“The team delivered another tremendous performance, achieving record quarterly operating and financial performance, including record sales, operating income, cash flow from operations and adjusted EBITDA,” said Mark D. Millett, SDI chairman, president and CEO.
The company reported Q1 2022 net sales of $5.6 billion and net income of $1.1 billion, or $5.71 per diluted share. The quarter also saw record steel shipments of 2.9 million tons.
Factored into the above figures are the costs of approximately $84 million, or $0.31 per diluted share (net of capitalized interest), associated with the continued startup of the company’s Sinton Texas Flat Roll Steel Mill growth investment.
First Quarter 2022 Comments
“Our first quarter 2022 operating income was $1.5 billion, with adjusted EBITDA of $1.6 billion,” said Millett. “This record performance displays the power of our highly diversified, value-added, circular manufacturing model — as the strength in our steel fabrication operations more than offset moderation in our flat roll steel business, as realized hot roll coil selling values declined from peak 2021 levels during the quarter.“
“Steel joist and deck pricing and order activity continues to be robust, supporting our continued record order backlog with higher forward pricing,” said Millett about the strong construction demand environment.
The company’s steel fabrication operations reported record operating income of $467 million in the first quarter 2022, almost double sequential fourth quarter results, as significantly higher selling values and strong shipments, more than offset marginally higher steel input costs.
The non-residential construction sector remains strong, resulting in a record order backlog with record forward-pricing for the company’s steel fabrication platform. The company anticipates this momentum to continue through 2022 based on these dynamics.
Steel Market Outlook
“We remain confident that market conditions are in place for domestic steel consumption to continue to be strong this year and into 2023,” said Millett.
“We believe steel prices will remain supported by strong demand, balanced customer inventory levels, and elevated raw material costs,” Millett said. “We believe the automotive, industrial, and energy sectors will remain solid steel consumers this year, with demand from the construction sector at the lead.”
About Steel Dynamics, Inc.
Steel Dynamics is one of the largest domestic steel producers and metals recyclers in the United States, based on estimated annual steelmaking and metals recycling capability, with facilities located throughout the United States and in Mexico.
Steel Dynamics produces steel products, including hot roll, cold roll, and coated sheet steel, structural steel beams and shapes, rail, engineered special-bar-quality steel, cold finished steel, merchant bar products, specialty steel sections and steel joists and deck. In addition, the company produces liquid pig iron and processes and sells ferrous and nonferrous scrap.
For more information, visit stld.steeldynamics.com
Additional Resources
- Steel Dynamics Opens $1.9 Billion Next Generation Mill in Texas
- Infographic: The True Sustainability of Steel in Numbers
- Steel Dynamics Makes Leadership Changes, Supports Marshall University Project, More