Steel Dynamics (STLD), a steel producers and metals recyclers, has announced a 2.50 times jump in profit for the quarter ended Jun. 30, 2014. The company earned $72.30 million or $0.31 a share in the second-quarter compared with $28.96 million or $0.13 a share a year ago. Analysts on average had predicted net income of $0.32 a share.

Revenue during the second-quarter climbed 14.90 percent to $2069.76 million from $1801.34 million in the last year period.

Gross margin expanded by 256 basis points over the last year period to 10.76 percent. Operating margins improved 253 basis points over the last year period to 6.37 percent.

The company reported operating income of $131.90 million, compared with operating income of $69.20 million in the previous year period.

''Our consolidated operating income increased 63 percent to $132 million for the second quarter 2014, as compared to the first quarter,'' said CEO Mark Millett. ''All of our reporting segments achieved meaningfully higher profitability compared to the sequential quarter, improving beyond the negative inclement weather impact on the first quarter.  Despite elevated import levels, the strength of underlying demand coupled with our continued market diversification and customer focus allowed us to achieve record quarterly steel shipments.  We are optimistic heading into the second half of 2014 and so are our customers.''    

''We continue to remain optimistic,'' Millett said. ''The improvement in our financial and operational performance is indicative of more than a mere weather recovery from the first quarter. The demand for our products continues to improve. The recent growth projects which began ramping-up in 2014 are also beginning to contribute to our earnings.  The automotive and manufacturing markets remain strong, and we believe the increase in domestic energy investments is continuing to strengthen.''

Cash Flow

Steel Dynamics has generated cash of $48.77 million from operating activities during the first half, down 21.88 percent or $13.66 million when compared with the last year period.

The company has spent $27.18 million cash to meet investing activities during the first half, as against cash outgo of $59.78 million in the last year period.

The company has spent $59.26 million cash to meet financing activities during the first half, as against cash outgo of $134.80 million in the last year period.

As on Jun. 30, 2014, the company's cash balance stood at $357.49 million, up 46.66 percent or $113.74 million from Jun. 30, 2013.

Working Capital

Steel Dynamics has witnessed an increase in the working capital over the last one year. The company's working capital stood at $1916.96 million as at Jun. 30, 2014, up $544.72 million or 39.70 percent from $1372.24 million on Jun. 30, 2013. It registered an increase in current ratio to 3.69 as at Jun. 30, 2014 from 2.58 on Jun. 30, 2013.

Shares of Steel Dynamics gained $2.17 or 11.68 percent to settle at $20.75 on Monday.