Steel Dynamics Inc. said Monday its profit soared in the third quarter as demand for steel remained strong and prices rose.
The Fort Wayne, Ind.-based steel maker and metal recycler said net income jumped to $991 million, from $100.1 million a year earlier. Net income per share rose to $4.85 from 47 cents and adjusted net income per share reached $4.96. The company posted record net sales of $5.1 billion, up from $2.3 billion in the third quarter of last year.
Operating income from the company's steel operations reached a record $1.4 billion, and the metals recycling operation's earnings remained strong at $47 million despite declines in ferrous scrap prices in August and September, Chief Executive Officer Mark D. Millett said. He said the company expects ferrous prime scrap pricing indices to increase slightly in the final months of this year, after declining in October.
Current market conditions should support solid domestic demand for steel for the rest of this year and into next year, Steel Dynamics said. New orders continue to be robust across the company's businesses amid moderating but still low customer inventories, the company said.
Steel Dynamics said it could deliver another record performance in the fourth quarter, as steel demand remains solid in the company's automotive, industrial, construction and industrial end markets.
