Steel Dynamics, Inc. (SDI) reported a decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three-month period ended September 30, 2024, net sales totaled $4,341.6 million, a decrease of 5% from $4,587.1 million in Q3 2023. For the nine-month period, net sales were $13,668.3 million, down 6% from $14,561.9 million in the prior year.

Gross profit for Q3 2024 was $605.2 million, significantly lower than $952.0 million in Q3 2023. The nine-month gross profit also fell to $2,360.9 million from $3,315.0 million in 2023. Operating income for the third quarter decreased by 46% to $395.4 million, compared to $733.6 million in the same quarter of 2023. For the nine-month period, operating income was $1,705.5 million, down 35% from $2,632.6 million in 2023.

Net income attributable to Steel Dynamics for Q3 2024 was $317.8 million, a 45% decrease from $577.2 million in Q3 2023. For the nine months, net income fell to $1,329.8 million from $2,026.6 million in the previous year. Basic earnings per share for Q3 2024 were $2.06, down from $3.49 in Q3 2023, while for the nine months, it decreased to $8.50 from $12.04.

The decline in revenue and profitability was attributed to lower average selling prices and reduced demand in certain segments. The Steel Operations segment, which accounted for 67% of consolidated net sales in Q3 2024, saw an 8% decrease in net sales compared to the same quarter in 2023. The Metals Recycling Operations segment experienced a 4% increase in net sales, while the Steel Fabrication Operations segment reported a significant 29% decrease.

In terms of strategic developments, Steel Dynamics issued $600 million in senior unsecured notes in July 2024, with proceeds intended for general corporate purposes. The company is also progressing with the construction of a recycled aluminum flat rolled products mill in Columbus, Mississippi, expected to begin operations in mid-2025.

Operating expenses increased, with selling, general, and administrative expenses rising 15% in Q3 2024 compared to the same period in 2023, primarily due to higher payroll and benefits costs. The company maintained a strong liquidity position with $3.1 billion available as of September 30, 2024, despite a decrease in cash and equivalents.

Overall, Steel Dynamics faced challenges in revenue generation and profitability during the reported periods, influenced by market conditions and operational performance across its segments.