BUTLER, INDIANA - April 8, 1997 - Steel Dynamics, Inc.
(NASDAQ symbol: STLD) today announced its consolidated operating results
for the first quarter of 1997. Sales for the first quarter of 1997 were
$98.1 million compared with $32.3 million in last year’s first quarter.
Net income was $14.6 million (or $.30 per share based upon 47,838,000
average outstanding shares) compared to a net loss of $11.3 million (or a
loss of $.35 per share based upon 32,672,000 average outstanding
shares) for the first quarter of 1996. Steel Dynamics commenced
commercial quality production in January 1996. Start-up costs of the
Cold Mill Project and Iron Dynamics, Inc. (“IDI”) were $1.4 million in
the first quarter of 1997, compared to start-up costs of $.7 million in
last year’s first quarter.
Steel production in the first quarter of 1997 was 275,000 tons
compared to 128,000 tons in the year-earlier quarter. Sales were 280,000
tons compared to 115,000 tons in the first quarter of 1996.
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 March 31,
1997.
Construction on the Cold Mill Project (including new galvanizing
capacity) is proceeding ahead of schedule and within the budget.
Start-up of the pickle line and one of two galvanizing lines are
scheduled for the second quarter of this year. The other work centers
are scheduled to start-up before the end of 1997. Progress relating to
the Caster Project (including additional melting capacity) is proceeding
well with all of the significant equipment now on order. Groundbreaking
for this project is expected in the second quarter of this year. The
Company’s wholly-owned subsidiary, IDI, is proceeding as planned with
its development and construction of a scrap substitute facility.
Groundbreaking is anticipated in June of this year with a construction
schedule of approximately fourteen months.
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 applications. |