Net sales for the second quarter of 2002 were $214 million, a 28 percent increase compared to the first quarter of 2002 and a 54 percent increase compared to the fourth quarter of 2001. SDI’s second quarter average consolidated selling price per ton was $340, 14 percent higher than the $297 recorded for both the first quarter of 2002 and the fourth quarter of 2001. SDI’s second quarter 2002 consolidated shipments of 628,000 tons set a quarterly record, and included approximately 66 percent of value-added, higher-margin flat-roll products.

"SDI’s operating results continued to improve in the second quarter, resulting in our second highest reported quarterly earnings per diluted share since inception," Keith Busse, president and chief executive officer, said in a statement. "The fact that we are able to operate the flat roll mill at levels beyond our estimated capacity is providing significant cost compression. This cost reduction combined with increased selling values resulted in a near-record consolidated gross margin percentage of 25 percent for the second quarter.”

Total shipments increased from 516,000 to 628,000, or 22 percent, compared to last year. SDI’s net income of $17.7 million this quarter represents a 785 percent increase from the corresponding quarter in 2001, with net earnings of $2 million.

The Flat Roll Division continued to attain peak operating results, achieving record production of 600,000 tons in the second quarter. The mill’s strong performance resulted in an operating profit of $66 per shipped ton, or a 94 percent increase as compared to the first quarter of 2002, a level last achieved in 1997 prior to the steel import crisis.