BUTLER, INDIANA — January 21, 1997 — Steel Dynamics, Inc. (NASDAQ
symbol: STLD) today announced consolidated operating results for the
fourth quarter and year ended December 31, 1996. Sales and income before
an extraordinary loss for the fourth quarter were $78.0 million and
$7.3 million, respectively. An extraordinary loss of $7.3 million was
for the early extinguishment of subordinated debt associated with the
Company’s initial public offering in November 1996. Income before the
extraordinary loss per common share was $ .17 and the net loss per
common share for the fourth quarter was $ .00 based upon average
outstanding shares of 41,807,840. (Income before the extraordinary loss
per common share was $ .15 and the net loss per common share for the
fourth quarter was $ .00 based upon the post-IPO shares outstanding of
47,803,341). Sales for the year were $252.6 million and the loss for the
year before the extraordinary item was $2.6 million. The loss before
the extraordinary item per common share and the net loss per common
share for the year were $ .07 and $ .28, respectively, based upon
average outstanding shares of 34,570,591. Steel production for the
fourth quarter and the year was 246,000 and 815,000 tons, respectively.
Steel sales were 232,000 and 794,000 tons for the same periods.
Steel Dynamics, Inc. (“SDI”) commenced commercial quality production
in January 1996. In 1995, SDI reported consolidated net losses
principally associated with the start-up of its facility of $8.9 million
and $19.9 million for the quarter and year, respectively. The net
losses per common share for the same periods were $ .28 and $ .62,
respectively.
On November 22, 1996 Steel Dynamics, Inc. completed its initial
public offering and began trading on the NASDAQ National Market System.
Net proceeds to the company were $140.2 million. Approximately $56
million was used to prepay the subordinated debt and the balance has
been used to either fund the expansion projects and general working
capital needs or is held as cash and short-term investments at December
31, 1996.
Construction on the Cold Mill Project (including new galvanizing
capacity) is proceeding ahead of schedule and within the budget.
Progress relating to the Caster Project (including additional melting
capacity) is proceeding well with most of the equipment now on order.
The Company’s wholly-owned subsidiary, Iron Dynamics, Inc. (“IDI”), has
recently employed Mr. Larry Lehtinen, formerly with Cleveland Cliffs, as
its Vice President and General Manager and Dr. Manfred Ottow, formerly
with the University of Berlin, Germany, as its Manager of Technology.
The IDI project is proceeding as planned.
Steel Dynamics, Inc. is now providing a broad range of flat-rolled
products to the market, including light gauge micro-alloyed and high
strength steels for demanding automotive application. |