FORT WAYNE, INDIANA — May 22, 2000 — Steel Dynamics, Inc.
(NASDAQ: STLD). In response to a number of inquiries about whether
recent declines in the price of the company’s common stock signify any
known adverse news or developments, Steel Dynamics today affirmed that
it is not aware of any factors that would explain the decline.
Keith Busse, President and CEO, stated that SDI’s business remains on
track for continued growth and profitability and that its flat rolling
mill in Butler, Indiana, is operating efficiently and near full
capacity. The company expects second quarter results to be stronger than
its record-breaking first quarter.
Busse stated, “I want to assure shareholders that our business
remains robust, with excellent prospects for the future. Although there
has been some near-term uncertainty in the steel marketplace in general,
particularly regarding demand and pricing for the third quarter of
2000, we are seeing an improved outlook through September, with moderate
to strong bookings and relatively little decline in prices. We foresee
healthy backlogs, steady prices, and a favorable product mix in the near
term. In addition, our primary cost component, steel scrap, has trended
down in cost, suggesting an opportunity to improve our already strong
margins.
Busse continued, ”¯Steel Dynamics continues to lead the American
steel industry in profitability and revenue growth. Our Butler mill is
among the most cost-competitive, most efficient flat-roll steel mills in
the world. Our structural mill to be built in Whitley County, Indiana,
as soon as the air permit has become final, will be world-class. We
continue to expect the air permit to be resolved in the company’s favor
in the very near future. Our Iron Dynamics subsidiary, a pioneering
effort to produce direct-reduced liquid pig iron from iron fines,
continues in a start-up mode, with excellent metallurgical results and
improving production yield.”¯
Since beginning operations in 1996, Steel Dynamics has grown quickly
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. In addition to plans to expand its product base
to include structural steel and rail, the company anticipates within
the next two to five years that it will build at least one additional
flat roll steel mill similar to its Butler facility, and will enter the
merchant shapes business.
Steel Dynamics has entered into an agreement with New Process Steel
under which a new company, New Millennium Building Systems, LLC,
co-owned by New Process Steel and SDI, will produce steel building
systems. New Millennium Building Systems’ first plant, in Dekalb County,
Indiana, has been constructed in seven months and is expected to begin
production in June. It could contribute to SDI’s bottom line by year-end
2000.
Forward Looking Statements
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