SDI Hit Hard by Winter in Q1

Severe winter conditions negatively impacted Steel Dynamic’s first quarter earnings causing a 25 percent drop in consolidated operating income as compared to the previous quarter. SDI reported net income of $39 million for first quarter 2014, on net sales of $1.8 billion, down from $55 million on net sales of $1.9 billion Q4 2013.

Steel operations in the Midwest, where most of SDI operates are located, were the hardest hit with operating income declining 30 percent to $47 million q/q. Sheet steel volumes decreased 12 percent along with reduced margin spread. Steel mill production utilization rate fell slightly to 86 percent compared to 88 percent the previous quarter due to production interruptions from power company curtailments. Shipments of steel from the flat rolled division totaled 641,520 tons. Total steel operations production total 1.5 million tons.