Steel Dynamics (NASDAQ: STLD) reported Q4 EPS of $1.31, $0.09 better than the analyst estimate of $1.22. Revenue for the quarter came in at $2.9 billion versus the consensus estimate of $2.96 billion.

• Record steel shipments of 10.6 million tons and steel fabrication shipments of 642,000 tons
• Record net sales of $11.8 billion and operating income of $1.7 billion
• Record net income of $1.3 billion
• Record annual cash flow from operations of $1.4 billion and EBITDA of over $2.0 billion
• Additional performance-based compensation of approximately $12 million, or $0.04 per diluted share, awarded to all non-executive, eligible employees in recognition of exceptional performance,
• Estimated lower earnings of $14 million, or $0.04 per diluted share, associated with a planned outage at the company's liquid pig iron production facility to complete major maintenance items that occur once every three to four years, and
• Lower earnings from significant planned maintenance outages at the company's two flat roll steel mills, including estimated incremental maintenance costs of $20 million, or $0.06 per diluted share. The outages also reduced fourth quarter flat roll shipments by an estimated 70,000 to 80,000 tons combined.

Outlook

"We believe the market dynamics are in place for domestic steel consumption to continue to increase this year," said Millett. "Based on strong domestic steel demand fundamentals and continued customer optimism, we believe North American steel consumption will experience steady growth. In combination with our existing and newly announced expansion initiatives, we believe there are firm drivers for our continued growth. We are excited about our new planned flat roll steel mill that was announced in the fourth quarter, and the anticipated long-term value creation it will bring through geographic and value-added product diversification. The new mill will have capabilities beyond existing EAF flat roll steel producers, competing even more effectively with the integrated steel model and foreign competition. We have targeted regional markets that currently represent over 27 million tons of relevant flat roll steel consumption, which includes the growing 16 million ton Mexican flat roll market. Our new planned steel mill will have significant competitive advantages in those regions.

"We continue to strengthen our financial position through strong cash flow generation and the execution of our long-term strategy. We are well-positioned for growth and remain focused on delivering shareholder value through organic and transactional growth opportunities," concluded Millett.

For earnings history and earnings-related data on Steel Dynamics (STLD) click here.