Release Date: January 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Have you witnessed any weather impact on your operations or demand dynamics so far this year? What type of volume increase should we expect in steel and fabrication in Q1? A: Barry Schneider, President and COO, mentioned that weather has tightened scrap availability but hasn't significantly impacted operations due to strong relationships with utilities and communities. Theresa Wagler, CFO, noted that while they expect seasonally higher volumes in Q1, the focus is on long-term growth in 2025, driven by public funding and reduced imports.
Q: Can you explain why the investigation into the hot-dip galvanized trade case was delayed? Have you seen an import bounce before potential tariffs? A: Mark Millett, CEO, explained that the delay is procedural due to the extensive data collection required. They have seen an import bump, but expect favorable rulings to reduce market noise. The cases are based on regular commerce, and they anticipate these imports to subside.
Q: Why isn't Sinton more profitable at 80% utilization, and what will it take to improve profitability? A: Barry Schneider highlighted that while Sinton's throughput has improved, extraordinary costs related to machine reliability and quality issues are impacting profitability. They are focused on improving yields and prime rates, with expectations for profitability in the second quarter. Mark Millett added that recent performance improvements are promising.
Q: Are there any new projects in the pipeline for 2025, and what is Steel Dynamics' appetite for acquiring new capacity? A: Mark Millett stated that while there are no imminent large-scale organic growth projects, the focus is on executing current projects like Sinton and Aluminum Dynamics. They continue to evaluate M&A opportunities but have nothing imminent.
Q: Can you clarify the expectations for the aluminum mill in terms of production? A: Mark Millett explained that they expect to end 2025 at a 50% utilization rate and reach 75% in 2026. The aluminum mill is expected to ramp up quickly due to its state-of-the-art technology and batch nature, unlike the continuous process at Sinton.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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