Steel Dynamics Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2012; Reports Impairment Charges for the Fourth Quarter of 2012; Provides Earnings Guidance for the Fiscal Year 2013
January 28, 2013
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Steel Dynamics Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2012. For the quarter, the company reported net sales of $1,705,001,000 against $1,858,345,000 for the same period last year. Operating income was $94,929,000 against $82,490,000 for the same period last year. The increase in sequential quarterly operating income was primarily the result of increased volume coupled with reduced costs in sheet operations, and increased nonferrous margins coupled with reduced direct costs in metals recycling. Income before income taxes was $63,904,000 against $41,014,000 for the same period last year. Net income attributable to the company was $60,571,000 or $0.27 per diluted share against $30,203,000 or $0.14 per diluted share for the same period last year. Net cash provided by operating activities was $206,918,000 against $93,957,000 for the same period last year. Purchase of property, plant and equipment was $64,839,000 against $75,212,000 for the same period last year.
For the year, the company reported net sales of $7,290,234,000 against $7,997,500,000 for the same period last year. Operating income was $391,165,000 against $584,820,000 for the same period last year. Decreased operating income was primarily driven by reduced operating margins in the company's sheet operations during the first half of 2012, as compared to the record metal spreads achieved in the first half of 2011. Income before income taxes was $204,066,000 against $424,319,000 for the same period last year. Net income attributable to the company was $163,551,000 or $0.73 per diluted share against $278,120,000 or $1.22 per diluted share for the same period last year. Net cash provided by operating activities was $446,304,000 against $486,355,000 for the same period last year. Purchase of property, plant and equipment was $223,525,000 against $167,007,000 for the same period last year. Net debt was $1.8 billion.
The company reported impairment charges of $356,000 for the fourth quarter of 2012.
The company provided earnings guidance for the fiscal year 2013. Current estimate for 2013 capital investment is in the range of $200 million to $225 million. The company announced current estimates would be in the range of $190 million to $200 million for depreciation and around $30 million for amortization of intangible assets.
Steel Dynamics, Inc. specializes in the manufacturing and marketing of carbon steel products. Net sales (including intragroup) break down by activity as follows:
- sale of steel products (66.2%): hot and cold rolled flat steel products, coated plates, beams, long commercial steels, rails, special profiles, etc.;
- treatment and processing of steel and metal scrap (21.3%);
- production of steel components for the non-residential construction industry (8%): frames, beams, joists, pilings, etc.;
- other (4.5%).
Steel Dynamics Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2012; Reports Impairment Charges for the Fourth Quarter of 2012; Provides Earnings Guidance for the Fiscal Year 2013