Steel Mills
January 26, 2016
SDI Reports Continued Growth in Construction, HR Weakest Product
Written by Sandy Williams
Steel Dynamics’ struggling recycling segment widened the company’s net loss to $253 million in fourth quarter 2015. It was determined that the book value of the metals recycling segment recorded $435 million in non-cash goodwill and other related asset impairment charge. Excluding the metals recycling charges, adjusted net income was $22 million on net sales of $1.6 billion. In comparison, net sales were $2.5 billion in Q4 2014 and $2.0 billion in Q3 2015.
“The fourth quarter 2015 market environment was one of the most challenging in recent history for our steel and metals recycling operations,” said Mark D. Millett, Chief Executive Officer. “The domestic steel industry operated at production rates below 65 percent in November and December, representing the lowest levels this year caused by ongoing pressure from unfairly traded steel imports, customer destocking and seasonally lower demand. Enabled by our diversified and value-added product portfolio, our steel operations were again able to maintain a higher than industry average production utilization rate at 73 percent for the fourth quarter 2015. The automotive market remains strong and construction continues to show incremental improvement, as current industry forecasts suggest additional year-over-year growth in 2016.
