Steel Dynamics is the second major steel producer to more than double second-quarter profit as demand for metals produced in the U.S. increases after President Trump’s tariffs on imports.
“We saw improved demand and product pricing across the entire steel platform, resulting in record quarterly steel shipments and significant margin expansion,” the company said in a statement.
The Fort Wayne, Ind.-based firm reported earnings of $1.53 per share, beating analysts’ expectations of $1.49, and rising from 63 cents the previous year. Net income of $362 million compared with $154 million during the same period in 2017.
The company supports the Trump administration’s efforts to create a more level playing field for domestic steel producers, Chief Executive Officer Mark Millett said Tuesday.
Trump’s 25 percent tariff on imported steel has pushed new business to domestic producers, enabling them to increase usage of production capacity at mills and helping Steel Dynamics competitor Nucor boost profit more than 100 percent.
“We are confident that macroeconomic and market conditions are in place to benefit domestic steel consumption,” Millet said. “Based on strong domestic steel demand fundamentals and customer optimism, we believe steel consumption will continue to be strong for the remainder of the year.”
The company’s stock rose 2.2 percent to $48.84 in early morning trading.
