This Growing Steel Company's Worst Business Is Super Important
Steel Dynamics (NASDAQ: STLD) had a relatively good third quarter compared to its domestic steel peers. The mill's third-quarter earnings were higher year over year, while its closest competitors posted year-over-year declines. That said, one of Steel Dynamic's divisions was a particularly weak spot. Here's the rundown of the quarter and why the weakest link is still super important to the company's long-term future.
Nucor (NYSE: NUE) is the most comparable company to Steel Dynamics because they both focus on electric arc mini-mills. Mini-mills are generally more flexible and cost-efficient through the cycle than older blast furnace technology. Nucor's third-quarter earnings declined 10% year over year. Steel Dynamics' earnings rose nearly 4%. While 4% may not sound impressive, comparatively it's pretty darn good, noting that blast furnace-focused United States Steel and Cliffs Natural Resources both did much worse.
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Source Fool.com
