SDI Reports Jump in Earnings, Sales for Quarter

Steel Dynamics, Inc. announced first quarter 2006 earnings of $76 million, versus $61 million in the first quarter of 2005 and $65 million 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. 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.