FT. WAYNE, INDIANA — July 13,1999 — Steel Dynamics, Inc.
(NASDAQ: STLD) today announced consolidated earnings for the second
quarter of 1999 of $12.1 million or $.25 per diluted share, compared to
$7.5 million, or $.15 per diluted share, for the second quarter of 1998.
Operating profit (operating income before start-up costs) was $32.4
million, or $64 per ton on sales of $166.7 million, compared to an
operating profit of $53 per ton for the second quarter of 1998 on sales
of $121.0 million. SDI’s second quarter 1999 shipments of 505,900 tons
were 56% more than in the second quarter of 1998. Start-up costs
associated with Iron Dynamics, Inc. (IDI) and the Structural Mill were
$4.5 million in the quarter. Hot band production was 511,600 tons
compared to 323,600 tons in the year-earlier quarter.
Keith Busse, SDI’s CEO, stated that “SDI’s excellent second quarter
results were largely due to increased volumes delivered by its new
investments in hot rolled, cold rolled, and coated products that had not
previously been fully utilized. Our employees stepped up in a more
vibrant market climate and delivered an outstanding volume and cost
performance in spite of a longer than planned maintenance outage during
the quarter. The import crisis, although not over, had abated to some
degree during the second quarter. Flat rolled product volumes have
increased nicely as a result of the industry winning round one of the
trade cases. Prices, tied to healthy domestic demand, are slowly moving
up, and we continue to believe that volume will remain strong for the
remainder of this year. This is SDI’s best quarterly performance since
the second quarter of 1997 ($.32 per share), a period when SDI’s income
tax rate was only 15% versus 40% today. Other expenses of $2.1 million
are due to the write-off of our investment in Qualitech Steel
Corporation. Were it not for this item, the Company’s second quarter
earnings would have been $.28 per diluted share.
As it would regard other items of interest, SDI received its air
permit for the construction of its new structural and rail mill in
Whitley County, Indiana from the Indiana Department of Environmental
Management on July 7th. We hope to begin foundation and building
construction by late August or early September. Progress continues to be
made on the repairs to the Iron Dynamics facility as a result of the
submerged arc furnace breakout in May. IDI is using this time to also
make certain improvements to its exhaust gas system. A restart of the
facility is expected by July 31st.”
Earlier this year, Steel Dynamics became the first flat products
mini-mill to receive ISO 9002 and QS 9000 certification. As a result of
these credentials, SDI looks forward to further penetration of the
important automotive and appliance markets. |