Steel Dynamics (STLD) 19 Oct 232023 Q3 Earnings call transcript

Good day, and welcome to the Steel Dynamics Third Quarter 2023 Earnings Conference Call.

[Operator Instructions] Please be advised this call is being recorded today, October 19, 2023, and your participation implies consent to our recording this call.

If you do not agree to these terms, please disconnect. At this time, I'd like to turn the conference over to David Lipschitz, Director of Investor Relations. Please go ahead.

Holly. you, Thank welcome Conference and Dynamics' Quarter Third Good to Earnings Call. XXXX morning, Steel

reminder, being Executive today. As be call Dynamics; and today's a is of Officer and our are Millett, Steel for Chief Chief call Officer. Executive available Theresa recorded website replay President today's later Wagler, Leading and Mark Chairman Vice on will and Financial

call senior members team are the of on our leadership individually. other The us joining

forward-looking and Some up similar this out be estimates of aluminum the as of turn be differently. general results today's date, and expect, fabrication Private believe, Such economic Act only uncertainties which risks meaning. They well the assumptions should Litigation statements Securities to and our of involve and typically to of and as predictive, anticipated anticipate statements, speak assets. starting intended protected steel, words use by by industry, actual new project XXXX of related Reform businesses preceded as connection may or conditions. in or are with integrating recycling returns and metals The business to

Examples the in annual Risk if SEC of press XX-K the in later Statements Form Forward-looking the applicable, Internet on SEC our at under any headings www.sec.gov Factors filed in well as found these and described XX-Q. release are as related and, Form

entitled release And turn yesterday Mark. reconciled most results. directly the pleased issued to financial Dynamics comparable Quarter to also in over will the measures You measures the any to I'm referenced press non-GAAP find Reports now GAAP call XXXX Steel Third

our us you Thank Thank third morning, for you, everyone. Good quarter call. earnings with on being David.

is had teams our at release, solid an low. the a quarter. and safety incident company-wide and all-time in saw our facilities incidents Almost rate financial XX-month achieved trailing XX% you again, running operational once our of X As

there. thank of congratulation takes It work get all every us each make one and more everyone. But your for So that to to you importantly, to happen.

investments, a cash healthy million portfolio, was adjusted flat operations the generation our from of supply new we our and They customers the this very of solutions prospective in surprised significant by can and and differentiated seeing with are and and both aluminum diversified speed our are and product a generation our chain EBITDA of actually $X.X entry far. Cash affirms provide. market execution current billion rolled very, and resiliency truly momentum excited $XXX performance by so value-added completeness

its product proven Sinton has nameplate does and by but remain mill rate capability challenged issues. capacity full equipment reliability production

issues we our work to the form spirit majority of the family. best can year these confident I'm industry. cannot Their passion achieved among drive our SDI be honor it's and success, whole end. the in an company. resolve by of the They metals proud Successes them. are incredibly the We team the of and foundation without

anger In And human think and people we political the the happening home, in America what focused to Ukraine, fact, the get the closer each people. surrounded each and of Palestinian even every within to Israel, world positive day in by this every do structure inspiring is truly work day. and in very, are on of right, catastrophe the turmoil treat suppression to they and our with and atrocities diverseness very that and right come be people it, they the

our performance great no leadership for and remind greatest financial their work come not family, only that without keeping us to in our teams, commitment colleagues As our our kids. everyone of or life partners their to such, importance I safe. SDI is

Together, include SDI everyone, decisions on and are the make over family, we're welfare. we reliant top in you We of active that. focused Today, we're and the and continue safety every each keeping all day, times at and for to an every actively conversation. their focused and be when that at XX,XXX safety safety we engaged focused mind on on best have very we -- are level, the people providing health, truly

to us details. you give some Before I continue, would Theresa, like

morning, a really for quarter. the everyone. my to you, Mark. third sincere And our Thank appreciation Good in solid teams performance

Our EBITDA third quarter $XXX XXXX share was million million. net or $X.XX diluted per income with $XXX adjusted of

for quarter fabrication were by of driven and the revenues $X.X sequential we're year pricing. and beyond, this of industry Third growth operating and million We steel focused than quarter on income $XXX see XXXX realized initiatives. continued steel results billion of and lower solid lower second fundamentals our transformational rest

in steel third scrap pricing declined average second costs. than generated to $XXX spread metal results operations income of the Our sequential compression due quarter, more than quarter lower operating as pricing million rolled steel flat realized

Our steel unplanned million to outage. volume XX,XXX X.X excluding of related lost steady tons, the tons July shipments at approximately remain Sinton's

an coating We expect of going value-added quarter Heartland, will additional so tons, million coating flat first both the XXXX and total that our operating X in million to by increasing our new rolled lines X capacity be our tons X.X begin making Sinton forward. mix at

compression. quarter, For XXX,XXX rolled the shipments, shipments flat-rolled second we and mills coated spread metals tons. tons those domestic ferrous shipments Operating third track and reduced tons, also our P&O and significantly of to hot scrap results in that $XX cold-rolled metal steel the shipments was income had in recycling due our of detailed from outages quarter operations than maintenance was X,XXX,XXX Ferrous million, of XXX,XXX quarter. numerous demand had as lower nonferrous

and American copper the scrap metals metals. are processing other aluminum, ferrous recycler, and We and consuming North largest nonferrous

mills, working furnace to The team our operating requirements. steel capital reduces quality, manufacturing to model, scrap company-wide continues lever improves circular and efficiency providing higher which lower-cost our

million and operations $XXX average second as sequential tons. Lower results operating historically income yet XX% XX,XXX Our strong the than of quarter steel pricing in declined third realized declined fabrication achieved quarter. volumes

remained solid good with steel Our and activity. deck order joists demand

activity. first Our backlog highs spot XXXX. as quarter has outpaced the from backlog record XXXX experienced The of have contracted extends through in shipments order

expect and to remain and resilience. spot the fourth decarbonization asset and sentiment onshoring manufacturing the investment in in quarter consumption pricing support and lower strong Department but quarter, Based based seasonally years. to levels Inflation steel on remains on momentum, joists earnings customer backlog, deck pricing steel fixed Forward very below expected Energy third manufacturing fabrication our Infrastructure, volumes. solid related in coming domestic backlog of we are Act, support and Reduction

Our circular cash generation continues variable to strong be on business structure. and our model based differentiated cost

we've basis. and unsecured we and $X.X achieved XX, $X.X During a the billion, generated investments. cash record September billion billion XXXX, capital we investments cash, XXXX, of $X.X liquidity billion in Year-to-date revolver. At on inclusive of generated of our third quarter from flow operations billion year-to-date liquid strong $X.X $X.X invested of of

XX% our our flat February, coated cash our for quarter, almost dividend September $X.XXX will share. XXXX, of plan. our X in rolled of investments which Much In authorized fourth shares. capital new outstanding of our million XX, we common increased estimate capital common is lines. related Year-to-date the aluminum stock, million, to the remaining For billion $XXX $XXX repurchased we X% of is also $XXX representing to existing completion under range be $XXX to the repurchase we've investments. million per related authorized At value-added million to of around $X.X the of billion our $X.X remained

shares. and $X.X our share by Since of per stock, XXX% over XX% common our our billion representing dividend XXXX, repurchased outstanding we've increased of

with a dedicated positive base high-return credit variable allocation strategy program. dividend with prioritizes time. complemented share of distributions We the preserving our designation shareholder comprised capital a that's investment-grade growth at to profile Our repurchase remain same

$XXX strength average returns years, position free metrics. of a maintaining from meaningful last of the sustainable profile million provides to placed has opportunity We've have a shareholder today. investment-grade while to strategic X fundamentally cash an capital generating ourselves Our that flow strong the annual changed foundation $X.X billion and over for growth in

Our growth with consistent strategy is aluminum philosophy. this

readily flow operations. aluminum cash our investments with fund will and available We flat-rolled from cash

highest clearly our facility our We distributions value to and also continuation strategy, first We're the positioned excited our the sustainable continue shareholder believe as by is renewable facility producer joint long-term XX% we're significant with operating creation. the our a value people, integrity. for and leading we've environment. we we part decrease operating long-term and Sustainability of regard, We greenhouse dedicated communities strong as of our of of Steel In responsible remain committed in business creation We're Scope emissions X optimized second to squarely venture our demonstrated. plan much products. our currently have XXXX. expect Aymium, our about a and gas to also venture the joint could with half that biocarbon to as

carbon expensive they than We ahead neutrality industry considerably believe actionable for our of manageable toward less many path have we that and more an lay peers. is

intention moving to strategy is an reduction journey, carbon with and positive sustainability forward a difference. its make and Our we're ongoing

Mark, to for over again, great the I a turn want Mark? performance. back call the to And just thank teams before I

Thank you, Theresa.

quarter. steel the well platform fabrication and to another it saw, continues turned solid perform you As in

expectations have earnings We nonresidential future high continue believe for coming business. this will years. the strong construction be to in markets We profile the of

spending Some into in residential XXXX this to been at rates related year and starts has last forecast and to build remain XXXX higher are compared strong the time.

asset the positive commentary, our The has from Steel the spending awarding I fixed it months order delayed folks momentum order dysfunction investment in And our historical public resilient. shortened the entry outlook. but certainly construction the extending related XXXX, the historical political backlog there, with strong reshoring XXXX, of along March manufacturing pricing. XXXX, with confirmed achieved fabrication additional into of spending standing next and from has and customer a its perspective, cycle. Current pricing quarter to provide as to remains through high programs, forward So infrastructure strong is effectively IRA through over XX talked out remains for first year. should of likely monies construction

production our a compared in only prices. meaningful to hedge cash provides steel our generation. across it markets, mills. volume adding Not important for the Furthermore, our softer onto resiliency a contributor higher rates significant through-cycle platform to through-cycle utilization effective natural pull-through Particularly steel peers, of itself, lower steel to an provides plan fabrication

our had prices as realized the with busheling positions. The our Our strategic third falling scrap mills generating steel softened geographic customers. American $XX for particular, domestic North in material our a and quarter Mexican declined. Scarp advantaged pulled and electric furnace mills prices competitively locations some Sinton recycling a metals a scrap raw footprint demand quarter from challenging of prices back and platform steel arc ton. metals competitive our provides platform our Columbus recycling ferrous In advantage

aluminum also aluminum flat-rolled our future investments. scrap We for strategically support procurement

that margin steel on even scrap scrap. This increasing future. supply is for the products our Our will enhancing metal's increase low and process flat through ferrous with materially more issues to expand prime increase technological solutions, to team the advantage our significant ferrous earnings and also aluminum It residual teams and scrap both capabilities opportunities rolled closely of partnering availability recycled with in the aluminum us platform. will mitigate content provide our and separation

amount paint price achieved operations to X been and manufacturing steel market and million rates increase volatility throughout the will solutions the X.X utilization downstream Our XX% results volume further mentioned, exclude value-added support in mitigating with some galvanizing when pull-through XX% commissioned of our clearly rate and quarter. was Higher internal of driven addition preference the contributors. this are have of chain all as XX%. strong tons product solid a offerings shipments first industry you compared customer diversified 'XX. Theresa Differentiated be domestic to will lines quarter Sinton of supply that Steel by all sales. And which financial rate demonstrated the and cycles, of of production driving utilization third in X

is Our our cycle and supports utilization higher key capability a differentiator through financial best-in-class and strong rate generation growing metrics. and through-cycle cash

year opaque. are are with also order and low the strike, backlogs ongoing customer the 'XX around steel Customer levels. Auto million for at strong remain inventories somewhat outlook of entry But remainder the is obviously, forward, XX for production Looking historically units. estimates the good. is

exposure than rate roll strong positively, inventories by XX likely will the norms, remain higher be for has anticipated below unfortunately, million further flat auto mitigated so European far auto meantime, with auto dealer Demand which the impact there already plus towards the In the be historical strike will more is which ongoing rolled build our strike. reduced and and concentrated our So still supply volume. is flat producers, Asian on unit 'XX. direct the tight

to A our impact Although auto construction division Engineered is exposure earnings, a steel we impact seeing backlogs solid. auto driving are long And overall Bar to by greater products gas domestic activity producers. a of XX%, consumed remains their mostly total at significant not The XX% and solid. in product strong, abating home product We're aggregate, improved anticipate Nonresidential are demand remains as are in turndown inventory the rate. further is of General entry, flat in to seeing for seasonality, construction We depletion and at the In good certainly spending inventory. Oil strike market still estimated is be is continues or in roll, certainly seems some lead half is 'XX. times with low chain should concluded. orders the long first and supply rebound meaningful up OCTG and support order meaningful is trend. low. be available are grow an customer inventory provides rapid once due X% strength residential as levels excellent pricing infrastructure expanding. but to to upward

exceeded achieving the The it's produced heat XXX,XXX to caster Sinton. mill hourly the Turning unplanned in production run capability lengths, clearly July its when the sequence Sinton team shear, has demonstrated its and outage rate. After related quarter. the nameplate to XX over tons rate

as caused to by equipment rate That X.X tons said, reaching production run a issues. the constrained is said, about utilization for end ramp XX% up principally the However, total expect we production million manifest of from I of reliability rate XXXX. a XXXX, by to low progressively

demonstrated competitive of key steel advantages the the Despite mill. the team challenges, our Texas has

XXX full mill X-inch to lower grades. tough It's those hot rolling, Customers already some We design to down quality lowering to thick of strip API XX the allowing up thermomechanical thus for strength allowed for dimensional up content proven grades reporting production approved product is products. We've been believe, for grades X.XX, and achieved higher surface Grade I -- have and and with completed are value-added capability. XX-inch exceptional costs do width. alloy and

next I that and flat-rolled arc And of of our technical affirms the generation no choice. furnace just in think there's electric it steel generally, process choices. mind, technology doubt my it's

and can make. pound We sell we market of we strong have gained steel every acceptance,

investment financial and our operating to generation strategies. and through-cycle cash growth exceptional continues Our support performance, our

said, expansion markets is all as our aluminum, absolutely from and existing into to Relative responses incredible. I across customers the new

mill purchased We acres, I site. model believe. that customers are customers do rolling co-location the developing all we in did indicating interest the But successfully it We're as it a of provides model of competitive are We developing we're for some already Sinton. seeing of the a X,XXX us. strong because for in number for sustainable

sustainable Mississippi, auto sectors. Approximately tons the project and recap in flat that packaging, facility, can, serving the beverage and roll metric and be To XXX,XXX located state-of-the-art ton XXX,XXX automotive metric Columbus, will facility, will tons industrial. industrial the be XXX,XXX XXX,XXX

satellite first on-site the casting around cash have to Columbus We'll capture X to lines to in centers are Arizona of lines to one Central up and quarter rolling billion, Slab cast still slab support scrap and mid-XX melt We and around fully be all start in downstream plans base. Setup slab for processing customers and anticipated the should in our is in up capacity by centers, will project cost the be and have project Arizona of with recycled XXX,XXX aluminum packaging slab $X.X metric funded perhaps Center Center cash. its including a X close 'XX XXX% Total coating source. January And one Mexico late for supported start Slab lines, recycled 'XX, Mexico tons. mill. 'XX.

draw from we've around in about million support the of another stated a annual to OmniSource $XX $XXX $XXX we them. will And million As to cycle portion. million aluminum for the past, of million EBITDA the through expect $XX

those years market a is SDI think generally has environment ago. The to little costs to very capital. from older tends started parallels in steel even second expected Again our what new years. ago. perspective, It effectively, domestic with large in and assets, very industry inefficient and the excites through to it at when ramp-up and an Years incentivized, to culture. we I had is we us. capital that perspective, According XX a our It that competitor's performance assets grow low the operations. America, to tough the its operate is has reinvestment X, situation see me and industry facility. From industry very to similar There's premise high-cost North efficiently for build leverages assets market is effective deficiency industry the the an legacy deficiency definite over investment last and our adjacent in innovative earning be to design within ability our of heavy saw that, X time supply commission we the been cost cost steel exists XX

differentiate In be they opportunities continue to closing, best-in-class and future financial the have to chain by continue our cash is growth we're through positively passion balanced to as steel momentum In in business are rewarded no demonstrated solutions years. continue returns. We're a leading allocation excited enhanced strategy the and turn, we model to we will supply Culture providing an that high the we all but consistently returning company, our mitigating integrated our pure cash over business growth top-in-class and always a and performance, allowing generation and cycles. metals industry. market metrics, shareholder longer by volatility flow

our teams, passion committed Our for every thank safety the yourselves families today We're And as that and one highest of each and foundation. them. I for dedication. priorities. to I other remind each and is them those and their their to of your listening

customers, focus our for competitively value our our shareholders on providing positioned continue and company, team We're superior to members, alike.

us joining again Thank you. over would to questions. Holly, Thank today. it to you love And we for turn

today [Operator Martin Instructions] Your Research is coming Englert first at Seaport for from question Partners.

about I from costs, think, Within some color increased, additional true on Sinton the any if which contributions regarding there the that material the think and share there substrates as about sequential some any per between maybe do substrate from conversion quarter $XXX. cost. negatives $XXX Is was costs and portion that and as outage to the can you impact the conversion steel change when conversion you well around substrates positives steel include costs in in of segment, ton

your anything question Sinton mix, Great change didn't the impact. would you're But fact in minimis. on observation. but impact. operate affecting conversion substrate pretty that were affecting lack of an cost was of It's volume that is because really Theresa. calculating little the per lost One to. on de costs. costs it's and a that ton do does It's The that pretty Martin, really there's that bit not have way. denominator. didn't have additional I significant way outsized that volume a It's things with the have that a July, point an just X conversion It to can there your all the cost basis

thing is But preparing that start then in second going that nothing in The follow of to the that as value-added are related Sinton there's some a Heartland well. thereafter we to point coming months conversion and the would be higher systemic to costs will to additional forward. and lines costs

Okay.

and there next transitory some that quarter then how do material So one-off as first certainly persist will quarter assets for kind a is then on Any that through and you're the quarter ramping for the year? the other long think lingering of the working in seemed value-added well, fourth of you that idea?

No.

costs So volume, part is have and to going with to that make Martin, conversion get that operating really which incremental try a to outage, figure being you're advent that you'll what you're significant the for nothing of with necessarily to fourth of now seeing line, out used is the quarter. there is back some in to the not but that incremental cost. have the value-added It's line going

of first first X of for quarter. in months before year the the even the X remaining lines of the the have online first with couple coming end probably -- the We maybe

basis? might to XQ different. Sinton one in would here, outage they something the this could seeing sequentially. I comparing on with I Sinton decline you're total back a Is sequential that suggest of looking an anything one steel impact shipments, XXXX, there imagine around year And X% If probably excluding at up tend here on and sequential seasonality last the have

Yes.

see have to within seasonality quarter, on, for the normal operating you that now So from some benefit ramping volume. additional and operations. fourth you Sinton would We Martin. you're will see But expect as the spot full up steel

exit on for utilization XX% with Sinton, correct? year, for aiming the you're And

That's correct.

the downward continued navigating in market Congratulations investments. growth Okay. the

Martin. Thanks,

question from next Your coming at De Morgan is Alba Carlos Stanley.

a So just of if generated see going on bit the how you color give that the you can continuing I on forward? by and us Sinton, operation do little wonder EBITDA

repeat Carlos, can that? you

sure. yes, Yes,

but the -- throughout So expect company production, that you things just are How nicely generated the the and you of given least the EBITDA up Sinton? on Sinton, plant, by the ramping production average well now the see at experienced, do by full fourth you quarter. evolution

Carlos, give we Sinton. can't with earnings the -- specific won't on guidance we give associated

items on volume updated giving so understand perspective. can are that a We from you modeling

can't given EBITDA expect you to from So means would all the improvement give third what the we significant Sinton. that that July. any we weren't But fact the operating at be quarter I to a will see of guidance that specific really

And right. All more the on one maybe business. just then fabrication

pricing forward Is backlog. pricing strong in strong that mention in there did history? you we can your to quarters You any extraordinary the that relative given recent provide, color have additional seen

to has price No, do It the with in the backlog. fabrication okay. and that's

XXXX, a good historical as We've from where backlog isn't is much pricing contracting somewhat. was as it's that that from even and backlog the the a be previous historical strong the spot than activity it maintained in seen peaks. from XXXX still order very So the market historical but really recent is basis in higher strong, basis

it through extends quarter of the So XXXX. now first

opening I something it's I We've notes, to -- And just it about the Energy would. IRA want been that we Mark else even because to in monies, had anyone awarded Department but had I of or it much money that not coming really public I much his it administration would and think of when think allocated the the that that reiterate that's want mentioned there's our talking monies expected keep are than X% XX% been than yet. It's on perspective, administration monies, to from it It's the going for lower estimate others agree indicated dollars. likely slower important.

as of investment, the elongation asset start deck will aren't from steel what expecting fully we're demand construction, the hearing the steel others half benefiting dollars We're well. administration joists from first of assumptions, that XXXX. So and in is and and those those fixed projects flowing

So to there's but volumes, bit pick and in seeing and improve XXXX I of in up and a we XXXX. now, expect you're fully the right that funding, a gap think that in

for Tristan today Gresser coming next Exane is from Paribas. question at BNP Your

Yes. Maybe in longer the first you guidance no one, stable that half-on-half valued. back the understand And volume up following on fabrication provided I now QX. some guidance is the

wondering So there. the -- if time I it's first and not was the guidance cut has been

what more cut sequential us So I driving that that bit a little quarter on provided quarter you you the question QX bit is on tell little ASP. after color and and kind can weakness guess, scale And they same volumes, of side the some a about movements, the fab? on for

ASP for that to on in HX is versus down down ASP XX% front, but already guided the level. You XX% QX HX XX% versus

as you but we So in QX visibility some expect calibrate QX, can also that try ASP because quarter you the in weakness help in to should have well. into us

modeling regular Tristan, a opening the fabrication from we that expect see some a well. notes From perspective, my steel mentioned in seasonality as in do volume to volume I

would the when you third quarter. that the would to have modestly sequentially, I attesting to we what than I question So consumption again, seen be in addressed to lower we're it Carlos. I think responded not -- But expect

average the backlog As it pricing, relates strong. is again, to very

don't the quarter. less the it to reasonable as down somewhat be in a expectation If but seasonally think than will I It same magnitude we somewhat, second being pricing you're sequential be think to having will see third volumes, that. it's lower

actually very have strong, being Relative market very to pricing, confounding market has a been seen because the the mid-July, solid. the we very, little since

input order has been fact, rate great. In

people where It strike. no Mid-September have already change demand that structural people pricing when they There's our recognize that situation inventories very, relative are main sort down. You first supply chain. into very, a emotional saw been allowed the to that price. When it's baked the of low in more very in the more emotional. was was

It's higher. once to and a pricing there there's seen an that strike. in are a momentum pricing That be anticipation quite there's we've definitely increase times of flat upward the lead stretching that an that see anticipation and going others today. You in inflection already rolled to resolution marked is our

we pretty market forward, Looking environment. constructive positive a see very

view I and capital and That's you side. you right very on that focus? follow-up Can your side, And this just allocation reiterate more reaffirm moment, priority XXX% the what your interested allocation not growth? And If are. at on of the inorganic I think quick not at aluminum. rolled is you context, a your on confirm I looking could in and acquisition area an mean, flat time just you and capital large that's helpful. are you're have the current now, touched what's the of the given attention on on that

we Tristan, can't that. confirm

a from So growth on transparent perspective, we're very capital allocation.

transactional. that can and organically be it Our primary growth be focus is can and both high-return for

aluminum focused and that much be on will a the very strategy, are We priority.

at quarter with end the sitting billion. record of are the We $X.X of liquidity

we don't incredible. performance So luxury, of of the the granted think, we is really the because take and have, it I which for teams,

shareholder were in our long-term invest that. as The time the strategy fit at transactionally well into luxury to be our full something intent to And point able was is accomplish strong this with there as if able continue returns. that organically to to to is both be that

right. All clear. very That's

question from Wolfe at next Research. Timna coming is Tanners Your

Sinton. about years now ago, about full X talking XX%. to XX%, a at and tons I a bit back being capacity, Wanted couple were talking little in If million about my you're of you go more ask just notes

ramp reason some I longer that better. gradual understand, there to run up? just trying full you it's some just assuming expected want I'm like no So to is maybe that out? to understand just Or are

have probably is just the of We ramp we'll the fine. of rate year, end that's to No, job continue explaining Again, an XX% that. not up. this done run The Timna. at elegant

that X.X is X million. absolutely plant total we advertised we've ramp around about think exceed up the no that year, nameplate million of XX% doubt capability And to be production there. to the I X can million which There's tons expect We the past. the from next ton in then will continue

And around we a is be little would by I bring total view. that expect of to the giving to to clarity a year just guess that, more full XXXX. Mark operating capacity bit just middle

Helpful.

timing it second on the contributing really product you in heard other the mix. I that question were to first in saying One they Okay. enrich really in half, but I says starting the was thought the your are downstream half. presentation, lines more And they're going

to when that cadence get up. ramps trying just So the of

what XXXX, investor galvanizing the you're running should and updated the paint could probably X.X first it towards into of and thereafter, month, of in line will months additional XXXX. line the Heartland in moving the end Yes, I'm that's to XXXX guessing have very as paint still line Sinton's closely toward. planning quarter line deck. within have the then the and well which starting been pointing be be probably first We're first Heartland but galvanizing

last then guidance. great. I And all in, the on That's if question, squeeze could CapEx the just it

QX, if we I wanted had of is to for billion. for for last that quarter, guide And talked just with about higher about the CapEx XXXX. number think check we you right $X.X just on XXXX had a number still

timing a to from the as put for a just aluminum billion. quarter. not first investment. It on planning that it's point to $X Timna. on more But going in perspective, bit now. middle the able side it's primarily to right XXXX get on investment closer little $X.X Actually, the of a possibly be a looks billion side, to welcome, capital You're through comprised be total we're like finer of we I'll the

as much billion as be $X.X may billion $X.X year. next aluminum to So

to some which as construction could then $XXX of we We the much well also have to value-added X tail start-up million. million million. have as and lines And of the $XXX facility, $XXX the biocarbon as maybe be

I'd that. $X.X will point on of be So But putting a billion. I in finer it's right the probably to now, say range $X billion

question for with next JPMorgan. Your is coming Peterson from today Bill

the are you does things of seeing tomorrow, market? maybe that or looking and tariffs been U.S. this U.S. removing assuming steel and the some and reports of summer this in go adjusting We've quotas some this that how of like that. see happen the Europe away, guess at would some ahead I impact quotas

we that away will affected in is on at by negotiated form are of that. Obviously, European and It up place influence been and our the others That been Europe U.S. Well, conversations. or that seems have hill not totally has we're on the would And the our I a in have imagine others, probably imports a lot the only little in so tariffs, quotas made. European But the with different, guess incoming position from really some folks Brazil has wrong. progress The tariffs of place not really in a intelligence don't remain air. in today, maybe, they are said, and steel is odds. Obviously, still all but same maybe of fashion are I in that much XX% position honesty. that market

Actually, activity will in tariff look at quota got in today. Again, and between European see the in a antidumping you form don't we tax to XXXX of long big If We feel the into trade place likely summer tax. principal that influence highlight We continued. went through brought run, necessarily remember on [indiscernible] strongly not more were be today Asian than effective lot attractive. the a cases and and straightforward constraints, duty, sunset type last that need transition carbon pricing the will countervailing any border and the there. that do some arbitrage that pricing,

addition concert the another in firmly with it's or following X these imports, They are Those won't -- think with legislative in change. They countervailing I Certainly, for nature. duty. firmly, eliminate years. instance.

Okay.

question. Second

strike, So started, late I bar you in only volumes, that but mentioned impact so strike quarter. really the third the guess, the with some on there's

assuming So that in quarter volumes, the fourth we segment? bigger trajectory hit of for the about a how should think

from we Well major fourth the see a for an in really change automotive volume don't for us, us. perspective in quarter

As is our they I and book of Asian, the percentage by mentioned of my impacted in have are strike we European as a large now. notes, auto not

basis, going it's -- some or Ford. to volume monumental not to be But we have We are and earnings. again, a do percentage with with both our business on Stellantis

Tumazos next Independent John with Research. Tumazos coming Your question is John from

XXXX, All normal, looking the looks apparent like to I the average don't the industry-wide of what's tons X pre-pandemic benefiting but business, the period. steel great it's I'm million about know 'XX, dynamics below 'XX. demand trending

custom accounting growth deviations? tons segments other and that other home high-rise Your the could at with own Are work port. guess, for of spending, inventories What or consumer building account the office that there sequentially choice e-commerce of are the warehouses for business they're decline, made are space a the down with are year-on-year, lower and retail in there's segments any XX,XXX or XX,XXX and order. I negating is tons no that because some choice

can the here. feedback from here. is John, our come all -- distribution when Yes, came publicly It's -- I obviously fabrication development the got stopped. -- look Well, -- they But Amazon we've very because through some think we overbuilt. we're obviously, on sort warehouse think I a principally out holding book has almost off. But book of Again, the is arena talking Not order lands. going do,

plants, it for it That's not down. It's distributors. battery the -- picking is rate us, still next chip the other case positive. education. the offset strongly, think it's nonetheless, year. offset, been would the continued at But we up, and an to anticipate has with manufacturing growth up just that picking totally Healthcare market although facilities, base. are I plants picked up And ongoing But the distribution we not

that Just order support. there spending, the bolster will the IRA it our give book some infrastructure, certainly and

distributor much do People prices of In records, consumer spot when how terms across hot prices inventory, want from potato. you caused $X,XXX in decline damage the big fall. as of think hold know, X-year and the you that's don't to sheet

supply anymore. reduced of fact, the in of don't speculate level impact not think the there's just speculation Well, is a chain, biggest speculation. reduced in level the People I

That So of on see basis. very people rates and They since very, input and to order ordering mouth. where kind allows be deliveries. very, mid-July, an consistent as-needed and you tend hand seen -- we've buying that's consistent July shipping

last very change cetera. thing no demand rates, -- saw et cetera, emotion and a The the year, year. pricing in structural was for always fruition. last story that today. similar with we Demand interest Even pricing we year We sector had a came this et all last market that seeing a in high very same which off, Last in cetera, it time very, year. we're of underlying solid as the was got There the just as fourth a -- us we honesty came every inflation, headed change no emotional. constructive the virtually recession. was outlook softness, across is quarter to et see XXXX We're for strike-related have yet

time People order the worried. stretch see we the we little or interest sure are lead able total to see opened We're And They're starting satisfy and for there will closed out. appetite starting to get see yet. so haven't we that to book We're December, book our is booked a essentially for given there. not November. be

momentum So it's a into positive going 'XX. market

our session. call over closing [Operator like concludes question-and-answer to remarks. Instructions] That the back any Mr. I'd Millett to for turn

here future. you, thank Thank phenomenal for I one anyone that customers. line. and SDI today Well, because Holly, in is remains we and the support on I blessed have blessed, every each you your of you, blessed, would for the tell loyal is am us

earlier, and that positive have got work, I come people to said every We've each providers. a We of as day. service and team phenomenal, inspired great phenomenal

you. thank So

and aren't, create for because us folks the you will you than I we those would shareholders shareholder in that Thank most consider value ahead. our those better hope that years

a you Bye-bye. day. good Have thank very So much.

Thank have gentlemen, for great safe and and Once that participation, again, call. ladies a you today's day. and concludes your