Steel Dynamics CEO says 'delivered a tremendous third quarter performance'
"The team delivered a tremendous third quarter performance, once again attaining numerous operational and financial milestones," said Mark Millett, President and Chief Executive Officer. "Our third quarter 2018 income from operations of $532 million and adjusted EBITDA of $626 million were both record highs for the company. Our strong financial performance was the result of record steel shipments, average steel selling price improvement, and resulting metal spread expansion across our steel operations. Underlying domestic steel demand remained strong. There was some temporary hesitancy in flat roll order activity based on customer sentiment and increased hot roll coil import levels. However, demand from major steel consuming sectors was steady, including construction, automotive, and energy. Earnings from our metals recycling platform declined in the quarter primarily as a result of our nonferrous operations, as shipments and commodity prices declined. In addition, China's decision to ban certain grades of recycled material has had a negative impact on nonferrous sales volume. Our steel fabrication platform achieved record shipments in the quarter, as nonresidential construction demand remained strong and customer sentiment positive. The order backlog remained at near record highs entering October. Despite the positive demand environment, earnings from our steel fabrication operations slightly decreased by the continued rise in average steel input costs," said Millett.