BUTLER, INDIANA — June 26, 1998 — Steel Dynamics, Inc.
(NASDAQ: STLD) today announced that it has been forced to temporarily go
to an off-peak hours production schedule due to a combination of
substantial energy shortages and unacceptably high costs for peak hour
energy now being experienced on the American Electric Power system.
Steel Dynamics (“SDI”) believes that the current upward spiraling of
prices is mainly the result of three factors: a substantial number of
nuclear outages coupled with unexpected fossil fuel generator outages on
the Midwest electrical grid; a prolonged, although not excessive,
period of heat and humidity presently being experienced throughout the
country; and the current wholesale trading of energy on a new and
non-traditional basis.
These factors are likely to have an impact on SDI’s production and,
therefore, on its earnings through the end of the third quarter. During
this period, the Company will be attempting to maximize its production
during off-peak hours and will, of course, continue to monitor its
energy costs to take advantage of peak hour energy that may become
available at reasonable prices once some of the outages are restored
and/or the heat substantially abates.
In the meantime, Steel Dynamics is urging American Electric Power to
use every means possible to enhance availability of power at prices that
will allow SDI to operate without severe economic penalty. We are
encouraged that some generating plants currently not in production may
soon be back on line.
Steel Dynamics has become a significant supplier of flat-rolled
steels in the Upper Midwest. The Company has just finished commissioning
its second battery of furnaces and its second caster. Production had
been ramping up extremely well until the recent energy crisis hit. No
layoffs, however, are anticipated. |