Steel Dynamics, Inc. (STLD) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $20.01 million, or $ 0.08 a share in the quarter, against a net loss of $253.24 million, or $1.04 a share in the last year period. Revenue during the quarter grew 20.08 percent to $1,910.60 million from $1,591.05 million in the previous year period. Gross margin for the quarter expanded 716 basis points over the previous year period to 16.22 percent. Operating margin for the quarter period stood at positive 2.93 percent as compared to a negative 23.96 percent for the previous year period.
Operating income for the quarter was $56.02 million, compared with an operating loss of $381.14 million in the previous year period.
However, the adjusted operating income for the quarter stood at $188.86 million compared to $47.36 million in the prior year period. At the same time, adjusted operating margin improved 691 basis points in the quarter to 9.89 percent from 2.98 percent in the last year period.
"We continue to perform at the top of our industry, both operationally and financially," said Mark D. Millett, president and chief executive officer. "We achieved record steel and fabrication shipments, and excluding the previously mentioned impairment charges, we earned record adjusted operating income of $861 million and near record adjusted EBITDA of $1.2 billion. The industry benefited this year from reduced flat roll steel imports, coupled with steady demand. Our steel operations profitability declined significantly in the fourth quarter, as customers' hesitancy to place orders earlier in the quarter resulted in both lower shipments and product pricing. However, supported by steady demand and a more favorable supply environment, rising world steel prices, and increasing raw material costs, both flat roll steel selling values and customer order activity increased meaningfully in November and December, and remain strong with an expectation for continued strength into 2017."
Operating cash flow declines
Steel Dynamics, Inc. has generated cash of $852.77 million from operating activities during the year, down 19.06 percent or $200.86 million, when compared with the last year. The company has spent $312.89 million cash to meet investing activities during the year as against cash outgo of $142.63 million in the last year.
The company has spent $425.42 million cash to carry out financing activities during the year as against cash outgo of $545.33 million in the last year period.
Cash and cash equivalents stood at $841.48 million as on Dec. 31, 2016, up 15.74 percent or $114.45 million from $727.03 million on Dec. 31, 2015.
Working capital increases
Steel Dynamics, Inc. has recorded an increase in the working capital over the last year. It stood at $2,216.86 million as at Dec. 31, 2016, up 10.70 percent or $214.21 million from $2,002.65 million on Dec. 31, 2015. Current ratio was at 4.11 as on Dec. 31, 2016, down from 4.74 on Dec. 31, 2015.
Debt comes down
Steel Dynamics, Inc. has recorded a decline in total debt over the last one year. It stood at $2,356.83 million as on Dec. 31, 2016, down 9.17 percent or $237.83 million from $2,594.66 million on Dec. 31, 2015. Total debt was 36.69 percent of total assets as on Dec. 31, 2016, compared with 41.84 percent on Dec. 31, 2015. Debt to equity ratio was at 0.85 as on Dec. 31, 2016, down from 1.02 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
