SDI Announced Earnings Guidance for Q1 2021

Fort Wayne, Indiana-headquartered Steel Dynamics, Inc. (SDI) announced first quarter 2021 earnings guidance to be in the range of $1.88 to $1.92 per diluted share.

The adjusted earnings are expected to be in the range of $1.94 to $1.98 per diluted share, which will be a new record. This excludes the impact from costs associated with the construction of the company's Sinton Texas Flat Roll Steel Mill growth investment of $18 million, or $0.06 per diluted share.

This compares with SDI’s sequential fourth quarter 2020 earnings of $0.89 per diluted share and adjusted earnings of $0.97 per diluted share. The company had reported earnings of $0.88 per diluted share in the prior year quarter.

The Q1 2021 earnings from the company's metals recycling operations are expected to surge higher, mainly on the back of increased volume and improved metal margins. On the other hand, the earnings from the company's steel fabrication operations are expected to be meaningfully lower, compared with the sequential quarter, primarily due to higher steel input costs. Meantime, the profitability from steel operations is expected to surge higher significantly, driven by notable expansion in flat roll metal spread.