BUTLER, INDIANA — April 14, 1998 — Steel Dynamics, Inc.
(NASDAQ: STLD) today announced consolidated earnings for the first
quarter of 1998 of $7.6 million or $.16 per share on a basic basis ($.15
per share on a diluted basis). Operating profit (operating income
before start-up costs) was $11.8 million, or $37 per ton. Sales for the
first quarter were $118.5 million on shipments of 321,700 tons. Start-up
costs of the Second Caster Project and Iron Dynamics, Inc. (“IDI”) were
$691,000 in the quarter. Hot band production was 299,100 tons compared
to 275,000 tons in the year-earlier quarter. In the first quarter of
1997, the Company reported income of $14.6 million, $.30 per share on a
basic and diluted basis, on shipments of 280,400 tons. Consolidated
earnings for the fourth quarter of 1997 were $8.4 million, or $.17 per
share on a basic and diluted basis, on shipments of 328,600 tons.
Keith Busse, SDI’s CEO, said, “This was a difficult quarter to
predict given the various number of start-ups we are experiencing. It
was not one of our best performances although our earnings are better
than expected due principally to the Nakornthai Strip Mill transaction
closing in the quarter. We missed our internal production and shipment
estimates for cold rolled and galvanized products because we found the
margins available for converting purchased bands very unattractive
compared to our earlier expectations. Accordingly, we chose to stay
substantially out of these markets until we could supply the work
centers with our own bands from our Second Caster Project beginning in
the second quarter. We remain very optimistic about the start-up of the
Second Caster Project and the related operating efficiencies that it
will bring to our hot rolling, cold rolling and galvanizing operations.”
Construction on the Cold Mill Project (including new galvanizing
capacity) was completed in the fourth quarter 1997. The Second Caster
Project (including additional melting capacity) continues to proceed
well. Groundbreaking for this project occurred in June of 1997 and
production is expected to begin in middle to late May 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 was in the third quarter of 1997 with start-up still
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. |