FORT WAYNE, INDIANA — February 1, 2000 — Steel Dynamics,
Inc. (NASDAQ STLD) today announced 1999 annual consolidated earnings of
$39.4 million on sales of $618.8 million. Net income increased 24% over
1998 results, on a 20% increase in sales. Flat-rolled steel shipments in
1999 were 1,869,700 tons, an increase of 32% from 1998. Net income per
diluted share for 1999 was $.82, up 26% from $.65 a year earlier.
Keith Busse, Steel Dynamics’ President and CEO stated, “SDI’s
performance in the fourth quarter was our best effort to date. Fourth
quarter earnings increased 70% versus last year and 31% versus last
quarter, finishing out a record year of sales and operating profit.
Generally speaking, market conditions continue to improve and SDI
expects its operating results, already considered by many to be the best
in the industry, to steadily improve in 2000. We believe our 1999
operating profit of $57 per ton will lead the industry for the third
consecutive year.”
In the fourth quarter of 1999, net income was $13.8 million, or $.29
per diluted share, compared to $8.1 million, or $.17 per diluted share
for the fourth quarter of 1998. The quarter’s sales were $176.0 million,
up 31% from 1998, while shipments of 509,500 tons were up 30%. Fourth
quarter operating profit (pretax income before interest and start-up
costs) was $32.9 million, or $65 per ton shipped, compared to an
operating profit of $52 per ton for the year-earlier quarter. Start-up
costs in the current quarter were $5.4 million.
“Our strong financial performance is a direct result of the hard work
of our highly productive work force at the Flat Roll Steel Division
which achieved excellent operating results. Clearly, our investments in
value-added equipment and facilities, which enhance capacity,
productivity and quality are paying off,” Busse said.
Hot band production was 519,100 tons in the fourth quarter, compared
to 376,400 in the fourth quarter of 1998. For the year, hot band
production was 1,938,200 tons compared to 1,425,700 tons in 1998, an
increase of 36%. Man-hours per hot band produced in 1999 was .41, an
improvement from .55 hours in 1998.
Iron Dynamics, SDI’s alternative iron production facility, was
restarted on January 7, 2000 and achieved 3,300 tons of production of
liquid pig iron in its first month. We anticipate that 10,000 tons can
be achieved in February. Metallurgical results to date are excellent.
IDI will operate in a limited production mode until final SAF redesign
and retrofit begins in the late-summer time frame. IDI estimates two to
three months to complete the retrofit.
Steel Dynamics anticipates that it will receive air permit clearance
for its Whitley County structural steel-making facility within the next
few weeks, with construction to begin immediately thereafter. Through
year-end, SDI had invested $127 million in plant and equipment for the
structural mill. Extensive site preparation has taken place in readiness
for fast-track construction.
Construction is well under way with regard to the company’s new
building products joint venture. We expect production to begin in the
first half of 2000 and anticipate profitability by year-end.
SDI continues to look at other significant growth opportunities both internally as well as externally.
Since beginning operations early in 1996, Steel Dynamics has quickly
grown as a profitable independent domestic steel producer. SDI currently
produces a broad range of flat-rolled steel products, including light
gauge, micro-alloyed and high-strength steels for demanding automotive
applications at its mini mill in Butler, Indiana. |