Steel Dynamics quarterly profit drops on lower steel prices
Oct 18 (Reuters) - Steel producer and metal recycler Steel Dynamics reported a decline in third-quarter profit on Wednesday, as higher manufacturing costs and a fall in steel prices hit the bottom line.
The company's primary revenue streams come from the manufacturing and sale of steel products, as well as processing and sale of recycled ferrous and non-ferrous metals, steel joists and deck products.
Last month, the company projected a sequential decline in third-quarter profits in its steel operations because of falling steel prices, and it also anticipated a negative impact on its recycling business due to lower volumes.
The average external product selling price in the reported quarter for the company's steel operations decreased $66 per ton sequentially to $1,191 per ton.
On an adjusted basis, the company reported a profit of $3.47 per share, compared to $5.03 per share reported a year earlier. Analysts were expecting $3.43 per share, according to LSEG data.
"North American steel consumption will increase in the coming years, and that demand for lower-carbon emission, U.S. produced steel products coupled with lower imports will support steel pricing," said CEO Mark Millett.
The Fort Wayne, Indiana based company posted revenue of $4.59 billion, a drop of about 19% from a year ago. Analysts, on average, had expected revenue of $4.49 billion. (Reporting by Shivansh Tiwary and Khushi Mandowara in Bengaluru; Editing by Shailesh Kuber)
