| FORT WAYNE, INDIANA, April 19, 2006—Steel Dynamics, Inc. (NASDAQ:STLD)
today announced first quarter 2006 earnings of $76 million, or $1.52
per diluted share, versus $61 million or $1.12 per diluted share in the
first quarter of 2005 and $65 million, or $1.31 per diluted share, in
the fourth quarter of 2005. Net sales for the first quarter were $666
million, an increase of 17 percent when compared to the first quarter of
2005 and the fourth quarter of 2005.
SDI’s average consolidated selling price per ton shipped increased
from $619 in the fourth quarter to $631 in the first quarter largely due
to better price realizations and mix while the cost of steel scrap per
net ton charged increased by $5 from the fourth quarter. Operating
income per ton shipped was $124 for the quarter and our net income
margin was 11 percent. Cash flow from operations was very strong,
increasing to $136 million, compared to $55 million in the first quarter
of 2005 and $92 million in the fourth quarter of 2005.
First quarter consolidated shipments of 1.1 million tons were 24
percent higher than the first quarter of 2005 and 15 percent higher than
the fourth quarter of 2005. Steel shipments for all of our steelmaking
units increased quarter over quarter.
“ Steel Dynamics had a very strong first quarter which was our second
best quarter to date,” said Keith Busse, President and CEO. “Revenue
and net income exceeded our preliminary views principally due to a
record volume of steel shipments. Our mills were able to take advantage
of the continuing strong market demand for flat-rolled steel and
wide-flange beams, increasing production rates and enjoying record
shipping volumes.
“ In the second quarter we expect to see continued strength in the
steel marketplace. Second-quarter financial results should equal or
exceed the first quarter due to continued strong demand, favorable
pricing trends, moderate steel scrap cost increases and declining
utility costs,” Busse stated.
Operating highlights for the first quarter included new monthly and
quarterly production records for the flat roll and structural mills.
During the quarter, the Structural and Rail Division successfully
completed multiple rail rolling trials using blooms produced on new
casting equipment. At Pittsboro, substantial progress has been made in
the construction of the new SBQ finishing facility with the start-up of
some finishing operations planned this month.
As previously announced, Steel Dynamics completed its acquisition of
Roanoke Electric Steel Corporation on April 11, 2006. As a result, Steel
Dynamics is announcing new names for its bar steel operations: The name
of our SBQ bar division based in Pittsboro, Indiana, has been changed
from the Bar Products Division to Engineered Bar Products Division, and
Roanoke Electric Steel in Roanoke, Virginia, has become the Roanoke Bar
Division.
With the announced capacity increases at Columbia City and Butler,
and the acquisition of Roanoke, SDI’s new steel production potential,
with all units running at full capability, will approach 6.0 million
tons by the end of 2007.
Download Unaudited Financial Statements (RTF file)
Conference Call and Webcast
On Thursday, April 20, 2006 at 11:00 am Eastern,
Steel Dynamics will host a conference call in which Steel Dynamics’
management will discuss first quarter 2006 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 to listen to the call is available on our Web
site. Only analysts and other callers identified prior to the call will
be included in queue for questions.
No telephone replay will be available. An audio replay of the Webcast will be available on the SDI Web site.
Forward Looking Statements
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