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Steel Dynamics, Inc said Monday after the markets closed that it swung to a first quarter profit, as sales jumped 91% from last year. The company's quarterly earnings per share also came in above analysts' expectations. At the same time, the company said it now sees a more stable and positive outlook for the rest of the year.
The Fort Wayne, Indiana-based steelmaker reported net income for the first quarter of $65.0 million or $0.29 per share, compared to a net loss of $87.9 million or $0.48 per share for the year-ago quarter.
On average, 11 analysts polled by Thomson Reuters expected the company to earn $0.26 per share for the first quarter.
Last month, the company said it expected first quarter earnings to be in the range of $0.22 to $0.27 per share.
Net sales for the first quarter jumped 91% to $1.56 billion from $814.65 million in the same quarter last year. Seven analysts had a consensus revenue estimate of $1.37 billion for the first quarter.
"In the first quarter, the company's steel operations gained momentum, producing operating income of $138 million, or $99 per ton shipped, while OmniSource, which benefitted from increased volumes and higher scrap prices, achieved operating income of $43 million during the quarter," said Keith Busse, Chairman and CEO.
The company's steel operations reported net sales of $1.0 billion for the first quarter, representing 63% of the company's external sales, up 87% from $535 million for the first quarter of last year. The company's steel operations include its five steelmaking divisions and The Techs three galvanizing plants.