SDI Enjoys Another Good Quarter

Steel Dynamics Inc. (SDI), Fort Wayne, Ind., has announced second quarter 2006 earnings of $97 million, versus $51 million in the second quarter of 2005 and $76 million in the first quarter of 2006.

Net sales for the second quarter were $821 million, an increase of 50 percent when compared to the second quarter of 2005 and 23 percent greater than the sales figure for the first quarter of 2006.

SDI’s average consolidated selling price per ton shipped increased from $631 in the first quarter to $672 in the second quarter largely because of “better price realizations and mix” while the cost of steel scrap per net ton charged increased by $10 from the first quarter, according to the company.

Second quarter consolidated shipments of 1.2 million tons were greater than the 1.1 million tons shipped in the first quarter.

“Steel Dynamics enjoyed continued strength in the second quarter,” says Keith Busse, president and CEO. “Demand has remained very strong for the entire portfolio of products we produce. As a result of higher utilization rates at our facilities, we are maintaining high production rates and shipping volumes, as well as strong profit margins,” he adds.

Looking ahead, Busse says, “The outlook is for continued strength in the steel marketplace in the second half.  In the near term, we see prospects for continued favorable pricing trends, moderating steel scrap costs, and strong shipping volumes leading to a very positive earnings outlook for Steel Dynamics given our continued growth prospects.”