NEW YORK Steel Dynamics Inc. (SDI) reported significant year-to-year gains in net income in the third quarter with improved sheet steel margins and overall shipment volumes boosting the companys results.
The Fort Wayne, Ind.-based steelmakers profits increased to $57 million in the third quarter ended Sept. 30 compared with $13 million in the same period last year. Net sales for the quarter jumped 13 percent to $1.9 billion compared with $1.7 billion in the same period last year.
SDI attributed the strong financial results, issued Oct. 16, to automotive demand and an improved residential construction market.
"Stronger steel sheet pricing combined with increased overall steel shipments, provided significant improvement to our third quarter financial results, as operating income from our steel operations sequentially increased $61 million," president and chief executive officer Mark Millett said in a statement. "We continued to see meaningful improvement in galvanized and painted sheet product demand. The automotive market remained strong and the steel consuming manufacturing market, such as HVAC and appliance, rose in concert with the improved residential construction market."
SDI said it saw improved margins in the third quarter over the previous quarter, with the average external selling price per ton for the companys steel operations increasing $13 to $794 per ton and average ferrous scrap cost per ton melted down $5 to $349 per ton.