Steel Dynamics, Inc. announced first quarter earnings of $15.8 million, compared to earnings of $1.6 million in the first quarter of last year. Net sales for the first quarter of 2003 were $236 million, a 41 percent increase compared to the first quarter of 2002. SDI's first quarter 2003 results were much stronger than the first quarter of 2002 due to higher shipping volumes and higher selling prices that resulted from stronger market conditions.
SDI's first quarter consolidated shipments of 648,000 tons were 15 percent higher than shipments in the year-ago quarter and 8 percent higher than shipments in the fourth quarter of 2002. First-quarter average consolidated selling price per ton was $363, compared to $297 per ton recorded for the first quarter of 2002 and $403 per ton in the fourth quarter of 2002.
"We are pleased with the quarter's results," said Keith Busse, president and CEO, "in light of the continued slow economic environment which resulted in lower than initially anticipated first-quarter average selling prices and somewhat lower shipping volumes. Nevertheless, production and shipping levels were sufficient to allow us to maintain solid profitability, although margins were adversely affected by lower realized selling prices for flat-rolled steels.
In the first quarter, Steel Dynamics shipped for export to China 129,000 tons of thin-gauge, hot-rolled and cold-rolled steel, and expects to continue to ship additional volumes in the second quarter. "These orders represent a welcome opportunity for the company to supply its products to the international market, but the extent of any ongoing business that will result is uncertain," Busse said.
Busse added that the company expects to have the former Qualitech SBQ mill near Indianapolis in operation by the first quarter of next year.