Steel Dynamics (STLD) has reported 220.09 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $200.82 million, or $0.82 a share in the quarter, compared with $62.74 million, or $0.26 a share for the same period last year.
Revenue during the quarter surged 36 percent to $2,368.22 million from $1,741.30 million in the previous year period. Gross margin for the quarter expanded 638 basis points over the previous year period to 19.94 percent. Total expenses were 85.87 percent of quarterly revenues, down from 92.42 percent for the same period last year. This has led to an improvement of 655 basis points in operating margin to 14.13 percent.
Operating income for the quarter was $334.57 million, compared with $131.96 million in the previous year period.
However, the adjusted operating income for the quarter stood at $334.57 million compared to $131.96 million in the prior year period. At the same time, adjusted operating margin improved 655 basis points in the quarter to 14.13 percent from 7.58 percent in the last year period.
"The team executed well and delivered a strong first quarter performance with all of our operating platforms improving profitability," said Mark D. Millett, president and chief executive officer. "Our first quarter 2017 income from operations increased over 75 percent sequentially to $335 million with adjusted EBITDA of $421 million. The increase in our earnings was principally driven by our flat roll operations, as demand was strong and customer inventory levels continued to be positioned at historically low levels. We also experienced increased shipments from our long product steel divisions. Steel demand from the automotive sector remained steady and construction continued to improve. Additionally, specific to our Engineered Bar Products Division, there was an overall general demand improvement, supported by positive movement in the heavy equipment and energy sectors.
Operating cash flow declinesSteel Dynamics has generated cash of $240.45 million from operating activities during the quarter, down 17.38 percent or $ 50.58 million, when compared with the last year period. The company has spent $14.76 million cash to meet investing activities during the quarter as against cash outgo of $24.65 million in the last year period.
The company has spent $100.35 million cash to carry out financing activities during the quarter as against cash outgo of $16.46 million in the last year period.
Cash and cash equivalents stood at stood at $966.83 million as at Mar. 31, 2017.
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