Overview: An investors guide to Steel Dynamics’ 3Q results

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Steel Dynamics’ 3Q results

Steel Dynamics announced its 3Q14 results on October 20. Steel Dynamics is the first major steel company to declare its third quarter results. In this series, we’ll discuss the key takeaways from Steel Dynamics’ 3Q results. We’ll also analyze the outlook for Steel Dynamics (STLD) in the coming quarters.

Steel Dynamics’ results have come during a global meltdown in metal shares. All steel companies’ share prices have seen a bloodbath on Wall Street over the past few weeks. You can learn more about the recent correction in steel shares by clicking here. Before we analyze Steel Dynamics’ 3Q results, we’ll analyze its key operations.

key operations

Steel Dynamics’ key operations

Steel Dynamics was founded in 1993. It’s one of the newer steel companies in the U.S. Steel Dynamics has three main operating segments:

  1. steel operations
  2. metals recycling and ferrous resources operations
  3. steel fabrication

Its main facilities are located in Indiana. However, it has a customer base across the U.S.

Steel Dynamics uses EAF for making steel

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Steel Dynamics produces steel through electric arc furnace (or EAF) steel mills. EAF is a steelmaking process that mainly uses steel scrap as a raw material to make steel. Steel Dynamics acquired OmniSource in 2010. OmniSource helps it meet 45% of its steel scrap requirement. OmniSource sells the remaining scrap to other customers. This enhances Steel Dynamics’ revenues and diversifies its business.

In the next part of this series, we’ll analyze Steel Dynamics’ 3Q results in more detail. We’ll discuss how STLD’s various business segments performed in the 3Q.

STLD is a leading steelmaker in the U.S. Other major steel companies in U.S. are ArcelorMittal (MT), U.S. Steel Corp. (X), and Nucor (NUE). Some of these companies are part of SPDR S&P Metals and Mining ETF (XME).

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