FORT WAYNE, INDIANA, April 20, 2005—Today Steel Dynamics, Inc. (NASDAQ:STLD)
today announced first quarter 2005 earnings of $61 million, or $1.12
per diluted share, versus $32 million or $0.58 per diluted share in the
first quarter of 2004 and $82 million, or $1.47 per diluted share, in
the fourth quarter. Earnings were up 90 percent from the first quarter
of 2004 and were higher than any prior year’s first quarter. Net sales
for the first quarter were $571 million, an increase of 49 percent from
the first quarter of 2004, but 5 percent lower than the fourth quarter
of 2004. Cash flow from operations remained strong, increasing to $55
million, compared to $11 million in the first quarter of 2004 and $41
million in the fourth quarter of 2004.
“Steel Dynamics had a good first quarter with consolidated shipments
up slightly from the fourth quarter,” said Keith Busse, President and
CEO of Steel Dynamics. “Because market demand for flat-rolled steel
remained weaker than initially expected, flat-roll selling prices
declined from fourth-quarter levels. Our average consolidated selling
price decreased 6 percent, from $710 in the fourth quarter to $669 in
the first quarter, principally due to lower flat-rolled pricing.”
“Our average steel scrap and scrap substitute costs declined by $16
per ton from the fourth quarter, but not sufficient to offset lower
selling prices, resulting in narrower profit margins. On the bright
side, we bought a significant amount of steel scrap in the first quarter
as scrap prices declined, potentially allowing for stronger margins in
the second quarter as we consume that material. In the second quarter we
anticipate that pricing will be flat, although we expect increased
shipping volumes in our bar and structural operating units. We expect
second-quarter results to be substantially stronger than the first
quarter as a result of lower steel scrap costs,” said Busse.
First quarter consolidated shipments of 853,000 tons were 7 percent
higher than the first quarter of 2004 and 1 percent higher than the
fourth quarter of 2004. Shipments of flat-rolled and bar steel declined
modestly from the fourth quarter, while structural steel and
joist-and-deck shipments increased.
Operating highlights for the first quarter included the start-up of
joist fabrication and shipments from the New Millennium plant in Lake
City, Florida, where new crews are quickly ramping up production. The
Structural & Rail mill continued its shipments of industrial-grade
rail and commissioned additional structural products in the quarter. The
Iron Dynamics Division continued pig-iron production at a rate of about
20,000 tonnes per month. Temporary equipment problems encountered in
February at the Bar Products mill and the Flat-Roll mill were quickly
resolved, and did not significantly reduce the mills’ overall output for
the quarter. Currently, all our facilities are in excellent position to
take advantage of the expected seasonal increase in demand in the steel
markets.
During the quarter the Company repurchased an additional 2.1 million
shares of its common stock, thus completing the repurchase of the entire
5 million shares authorized by the Board of Directors when it approved
the Company’s 2004 Share Repurchase Program on October 26, 2004.
Effective April 19, 2005, however, the Board granted approval to
repurchase an additional 2.5 million shares under its Share Repurchase
Program.
Download Unaudited Financial Statements (RTF file)
Conference Call and Webcast
On Thursday, April 21, 2005 at 11:00 am Eastern,
Steel Dynamics will host a conference call in which Steel Dynamics’
management will discuss first quarter 2005 results. You are invited to
listen to the live audio broadcast of the conference call over the
Internet, accessible from Steel Dynamics’ Web site: www.steeldynamics.com
Dial-in information is available on our Web site. No telephone replay
will be available. An audio replay of the Webcast will be available
from the SDI Web site.
Forward Looking Statements
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