FORT WAYNE, INDIANA, October 14, 2002 — Today Steel Dynamics, Inc. (NASDAQ:STLD)
announced record third quarter earnings of $29 million, or $.61 per
diluted share. Net sales for the third quarter of 2002 were $241
million, a 13 percent increase compared to the second quarter of 2002
and a 44 percent increase compared to the first quarter of 2002. SDI’s
third quarter average consolidated selling price per ton was $403, 19
percent higher than the $340 recorded for the second quarter and 36
percent higher than the $297 recorded for the first quarter of 2002.
SDI’s third quarter consolidated shipments of 598,000 tons were just
five percent less than the company’s record achieved in the previous
quarter.
In comparison to the third quarter of 2001, SDI’s net sales for the
third quarter of 2002 increased 53 percent and consolidated shipments
increased 20 percent. Net income increased by $27 million and earnings
per diluted share were $.56 higher than the same period in 2001.
The Flat Roll Division continued to attain outstanding operating
results. The Butler mill set yet another quarterly production record of
607,000 tons in the third quarter. On a year-to-date basis, the mill has
produced at an annual rate of 2.4 million tons, exceeding previously
estimated capacity levels. The mill’s excellent performance this quarter
resulted in a record consolidated operating profit of $95 per shipped
ton. On a stand-alone basis, the mill’s operating profit per shipped ton
approached $120 for the third quarter.
“We are extremely pleased with the operating results being realized
at our Flat Roll Division,” said Keith Busse, president and chief
executive officer. “These superior production levels are continuing to
cause significant cost compression, allowing us to realize even greater
profitability from our improved pricing. We achieved a record
consolidated gross profit margin of 30 percent this quarter. The mill is
fully booked for the fourth quarter at selling values similar to those
experienced in the third quarter.
“The ramp-up of production at our new Columbia City, Indiana,
structural steel mill is proceeding well,” Busse said. “Commissioning of
the mill continues to make good progress. We are shipping product to
customers during this phase and expect to complete commissioning of all
structural products by the first quarter of 2003. During the first
quarter the rail portion of the mill should be ready to begin its
production trials.”
SDI previously announced its purchase of Qualitech Steel SBQ LLC’s
special bar quality mini-mill assets located in Pittsboro, Indiana, for
approximately $45 million. SDI plans to invest between $60 and $70
million of additional capital to convert the Qualitech facility to the
production of merchant shapes and reinforcing bar products. The company
does not currently plan to produce special bar quality (SBQ) products
when the facility is restarted, but has not ruled out the possibility of
producing SBQ products there in the future. SDI’s additional investment
is expected to occur in the second half of 2003. Current plans are to
complete the conversion during the fourth quarter of 2003. After
conversion, the facility is expected to have a capacity of 500,000 to
600,000 tons per year.
Steel Dynamics manufactures a variety of hot- and cold-rolled steel
products at its Butler, Indiana, flat-roll mini-mill and has recently
begun initial beam production at its new Columbia City, Indiana,
structural steel and rail facility.
Download Unaudited Financial Statements (RTF file)
Conference Call Webcast Available on SDI Web Site
A conference call in which Steel Dynamics’ management will discuss
the company’s third quarter 2002 results and the business outlook is
scheduled for 11:00 am EDT on October 15, 2002.
You are invited to listen in to the live broadcast of the conference
call over the Internet, accessible from Steel Dynamics’ Web site home
page. A replay of the Webcast will be available from the SDI Web site
for sixty days. A dial-in telephone replay of the call will be become
available about 1:00 pm EDT October 14 through midnight, October 19,
2002, at 719-457-0820 (confirmation code: 742248).
The Webcast, as well as other information about Steel Dynamics, can be found at:
www.steeldynamics.com
Forward Looking Statements
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