BUTLER, INDIANA — October 7, 1997 — Steel Dynamics, Inc.
(NASDAQ: STLD) today announced consolidated earnings before the
extraordinary item for the third quarter of 1997 of $13.0 million or
$.27 per share. The extraordinary item, previously described in the
Company’s press release dated July 17, 1997, related to the write-off of
unamortized financing costs as a result of an amendment of the
Company’s original 1994 credit agreement. Operating profit (pretax
income before interest and start-up costs) was $20.0 million or $67 per
ton. Sales for the third quarter were $104.7 million on shipments of
300,900 tons. Start-up costs of the Cold Mill Project, Second Caster
Project and Iron Dynamics, Inc. (“IDI”) were $3.8 million in the
quarter. Hot Band production was 314,300 tons compared to 227,400 tons
in the year-earlier quarter.
Keith Busse, SDI’s CEO, said, “We are pleased that we were able to
deliver yet another outstanding effort for our shareholders as all of
our costs were in line with our expectations. We expect our $67 per ton
of operating profit will again be one of the industry’s best results for
the third quarter. The $5 per ton decrease from our second quarter $72
per ton result was attributable to increased scrap costs. The best news,
however, may be the progress of our construction projects. All three
projects are proceeding ahead of schedule and within budget and,
therefore, should begin contributing to our margins early next year.”
For the first nine months of 1997, SDI earned $43.2 million before
the extraordinary item, or $.90 per share on sales of $305.5 million and
shipments of 875,900 tons. Start-up costs for the same period were $7.0
million. Hot Band production was 880,400 tons compared to 568,700 in
the first nine months of 1996.
Construction on the Cold Mill Project (including new galvanizing
capacity) continues to proceed ahead of schedule and within the budget. A
successful start-up of the new continuous pickle line in the second
quarter was followed by the start-up of one of the two galvanizing lines
in the third quarter. The other four Cold Mill work centers are
scheduled for commissioning in the fourth quarter of this year. The
Second Caster Project (including additional melting capacity) is also
proceeding well. Groundbreaking for this project occurred in June of
this year and production is expected to begin in the second quarter of
1998. The Company’s wholly-owned subsidiary, IDI, is proceeding as
planned with regard to the development and construction of a scrap
substitute facility. Groundbreaking was in the third quarter with
start-up expected before the end of 1998.
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. |