FORT WAYNE, INDIANA — April 13, 1999 — Steel Dynamics, Inc.
(NASDAQ: STLD) today announced consolidated earnings for the first
quarter of 1999 of $3.0 million or $.06 per diluted share, compared to
$7.6 million, or $.15 per diluted share, for the first quarter of 1998.
Operating profit (operating income before start-up costs) was $14.3
million, or $39 per ton on sales of $117.5 million, compared to an
operating profit of $37 per ton for the first quarter of 1998, on sales
of $118.5 million. SDI’s first quarter 1999 shipments of 369,500 tons
were 15% higher than in the first quarter of 1998. Start-up costs
associated with Iron Dynamics, Inc. (IDI) and the Structural Mill were
$4.0 million in the quarter. Hot band production was 404,600 tons
compared to 299,100 tons in the year-earlier quarter.
Keith Busse, SDI’s CEO, commented that “first quarter earnings versus
the previous year were severely impacted by the import issues as well
as the extended January mill outage dedicated to the installation of our
seventh finishing stand at Butler. SDI’s January volume was affected by
approximately 75,000 tons as a result of this outage”. Commenting
further, Mr. Busse stated that he believes the market has finally
bottomed and SDI’s earnings could show significant improvement in the
ensuing quarters. SDI’s hot and cold mills are now running at near
capacity. “This is the first time that we have had an opportunity, given
market circumstances, to run the second caster and our new cold mill at
or near capacity.”
Mr. Busse further stated that “Iron Dynamics commissioned its new
submerged arc furnace on March 24th with a two-heat test run. Hot
commissioning has continued with 1,200 tons being produced to date. So
far, it would appear that there are no significant flaws in the process.
Obviously, there are numerous minor adjustments and mechanical issues
that will require attention. All heats have been produced as prime
material with sulfur readings below expectation and with relatively high
levels of metallization. These test heats have demonstrated substantial
benefits to SDI, including a significant energy savings, much lower
nitrogen content in the steel, less carbon and patch consumption, and
excellent low residual steel characteristics.
“Construction on our new structural steel making facility which has a
capacity of approximately 1,000,000 tons of low cost high grade
material has now begun. Delays in the commencement of construction were
principally due to the late issuance of the air permit for this site. We
expect the mill to be hot commissioned by midyear 2000.”
Steel Dynamics has now become the first flat products mini-mill to
receive ISO 9002 and be recommended for QS 9000 certification. As a
result of these credentials, SDI looks forward to further penetration of
the important automotive and appliance markets. |