Steel Dynamics Inc. reported a sharp profit increase for the second quarter, reflecting improved shipments and pricing.
The steel industry has been hurt in recent years by low prices resulting from an import-driven supply glut, but in June, Steel Dynamics said improved inventory trends for flat-rolled products and reduced imports would help second-quarter results.
On Monday, the company said there has been "steady underlying demand" for flat-rolled steel products and expects improved flat-rolled metal spreads in the third quarter. "However, aside from the construction sector, long product steel demand is generally challenged," the company said.
For the quarter ended June 30, Steel Dynamics earned $142 million, or 58 cents, compared with net income of $31.6 million, or 13 cents a share, a year earlier. In the 2015 period, earnings excluding items were 53 cents a share.
The company had projected earnings of 53 cents to 57 cents a share.
Revenue rose 1% to $2.02 billion, while analysts polled by Thomson Reuters expected $2.04 billion.
In after-hours trading, Steel Dynamics shares fell 3.5% to $27.
In June, Steel Dynamics agreed to buy Vulcan Threaded Products Inc. for $126 million as part of a strategy to buy downstream companies that can purchase steel internally from Steel Dynamics in times of weak demand