Steel Dynamics (STLD) 8-K Steel Dynamics Reports Second Highest Quarterly Earnings and Record Results for 2006

Exhibit 99.1

Press Release
January 23, 2007
6714 Pointe Inverness Way, Suite 200
Fort Wayne, IN 46804-7932
260.459.3553 Phone260.969.3590 Fax

Steel Dynamics Reports Second Highest Quarterly Earnings and Record Results for 2006

FORT WAYNE, INDIANA, January 23, 2007 — Today Steel Dynamics, Inc. (NasdaqGS:STLD) announced net sales of $3.2 billion for the year 2006, a 48 percent increase over 2005 net sales of $2.2 billion. Net income for 2006 was $397 million, or $3.77 per diluted share, compared to 2005 net income of $222 million or $2.17 per diluted share, an increase in net income of 79 percent. Per-share figures for all periods reflect a two-for-one stock split in the company’s common stock effective November 20, 2006.

For the fourth quarter of 2006 net income was $105 million, or $1.03 per diluted share, compared to $65 million or $0.65 per diluted share in the fourth quarter of 2005. Net sales were $840 million for the quarter, an increase of 47 percent over the fourth quarter of 2005. Consolidated shipments in the fourth quarter were up 27 percent to 1.2 million tons compared to 920,000 tons in the fourth quarter of 2005. Compared to the third quarter of 2006, consolidated shipments were 6 percent lower. The average consolidated selling price per ton in the fourth quarter of 2006 decreased to $720 from $733 in the third quarter, but was up 16 percent compared to the fourth quarter of 2005. The cost of steel scrap per net ton charged decreased $28 from the third quarter to the fourth quarter.

Consolidated shipments for 2006 grew 30 percent to 4.7 million tons. All three of the company’s Indiana steel mills established annual records for sales and profits. Each mill also achieved new production and shipping milestones.  For the first time, the Flat Roll Division’s annual shipments exceeded 2.5 million tons, the Structural and Rail Division topped 1 million tons, and Engineered Bar Products surpassed 500,000 tons. In addition, both steel mills that were acquired as a part of the merger with the Roanoke Electric Steel Corporation achieved record results in 2006. Roanoke contributed to Steel Dynamics’ results for slightly less than three calendar quarters, following the merger’s effective date of April 12, 2006.

In 2006 the company’s operating income was $141 per ton shipped with an operating margin of 20 percent. SDI’s 2006 average consolidated selling price per ton increased to $691 from $608 in 2005. During 2006, Steel Dynamics generated $404 million in cash flow from operations. Capital expenditures for the year were $129 million. During 2006 the company invested $247 million to repurchase 9.4 million shares of common stock, post-split.

“2006 was an excellent year for Steel Dynamics,” said Keith Busse, President and CEO. “During 2006 we were able to take advantage of numerous marketplace opportunities as a result of the production capabilities we’ve put into place over the past several years. With the exception of some softening of demand for flat-rolled steel in the fourth quarter due to market oversupply, the markets for our products were strong all year. With prices for steel scrap and energy costs remaining relatively stable or declining, and selling prices relatively strong, we were able to achieve stronger margins.

“The integration of Roanoke Electric Steel into Steel Dynamics is progressing extremely well, with a strong contribution to SDI’s earnings from those operations starting in the third quarter. With the addition to our product mix of Roanoke’s merchant bars and Steel of West Virginia’s specialty structural steel products, as well as the strong growth in wide-flange beams and SBQ bars, Steel Dynamics ended 2006 as a much more diversified steelmaker. In 2005 two-thirds of our volume was in flat-rolled steel, but by the fourth quarter of 2006 flat rolled accounted for slightly less than half of our steel operations shipments. The strength of other steel products helped us offset lower volumes in flat rolled toward the end of the year.”

“As we look ahead to 2007, we are optimistic about our ability to continue our growth in sales and earnings, continuing to take advantage of our production assets and our capabilities to provide our customers with quality steel products tailored to meet their needs,” Busse said. “The capital spending projects now underway in 2007 should increase our production capacity to nearly 6.5 million tons by the end of 2008. As for the current market conditions, we expect the inventory correction for flat-rolled steel to be resolved by the second quarter, and at this time foresee continued favorable market conditions in 2007 for other product categories related to non-residential building, commercial transportation, and commercial and industrial investment. SDI sees its first quarter 2007 earnings in the range of $0.85 to $0.90 per diluted share. Although the first quarter appears to be slightly softer than the fourth quarter due to continued weakness in the flat-rolled sector, it will still be stronger than the first quarter of 2006.  All in all, should the economy remain strong and stable, 2007 could be another record year.”

Forward-Looking Statements

This press release contains some predictive statements about future events, including statements related to conditions in the steel marketplace, Steel Dynamics’ revenue growth, costs of raw materials, future profitability and earnings, and the operation of new or existing facilities. These statements are intended to be made as “forward-looking,” subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. Such predictive statements are not guarantees of future performance, and actual results could differ materially from our current expectations.

Factors that could cause such predictive statements to turn out other than as anticipated or predicted include, among others:  changes in economic conditions affecting steel consumption; increased foreign imports; increased price competition; difficulties in integrating acquired businesses; risks and uncertainties involving new products or new technologies; changes in the availability or cost of steel scrap or substitute materials; increases in energy costs; occurrence of unanticipated equipment failures and plant outages; labor unrest; and the effect of the elements on production or consumption.

In addition, we refer you to SDI’s detailed explanation of these and other factors and risks that may cause such predictive statements to turn out differently, as set forth in our most recent Annual Report on Form 10-K and in other reports which we from time to time file with the Securities and Exchange Commission, available publicly on the SEC Web site, www.sec.gov, and on the Steel Dynamics Web site, www.steeldynamics.com

Forward-looking or predictive statements we make are based on our knowledge of our businesses and the environment in which they operate as of the date on which the statements were made.  Due to these risks and uncertainties, as well as matters beyond our control which can affect forward-looking statements, you are cautioned not to place undue reliance on these predictive statements, which speak only as of the date of this press release.  We undertake no duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Conference Call and Webcast

On Wednesday, January 24, 2007 at 11:00 am EST, Steel Dynamics will host a conference call in which Steel Dynamics’ management will discuss fourth quarter and 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 is available on our Web site. No telephone replay will be available. An audio replay of the Webcast will be available on the SDI Web site.

Contact:	Fred Warner, Investor Relations Manager (260) 969-3564
	f.warner@steeldynamics.com

Steel Dynamics, Inc.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

	Three Months Ended					Twelve Months Ended
	December 31,					December 31,
	2006			2005		2006			2005
Net Sales	$	839,800		$	569,645	$	3,238,787		$	2,184,866
Costs of goods sold	610,654			429,689		2,408,795			1,699,717
Selling, general, and administrative expenses	53,872			26,058		170,878			91,974
Operating Income	175,274			113,898		659,114			393,175
Interest expense	8,498			7,898		32,104			34,341
Other (income) expense, net	(1,615		)	411		(4,545		)	(1,792		)
Income before income taxes	168,391			105,589		631,555			360,626
Income taxes	63,325			40,652		234,848			138,841
Net income	$	105,066		$	64,937	$	396,707		$	221,785
Basic earnings per share	$	1.14		$	.75	$	4.22		$	2.49
Weighted average common shares outstanding	92,545			86,267		93,931			89,242
Diluted earnings per share,
including effect of assumed conversions	$	1.03		$	.65	$	3.77		$	2.17
Weighted average common shares and share equivalents outstanding	102,297			100,263		105,774			103,284
Dividends declared per share	$	.15		$	.05	$	.50		$	.20

Note:All prior period share data has been adjusted to include the company’s two for one stock split effective November 20, 2006.

Steel Dynamics, Inc.
UNAUDITED SUPPLEMENTAL OPERATING INFORMATION

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,						Quarterly 2006
	2006			2005			2006			2005			First			Second			Third
Shipments and Production Data (tons)
Shipments
Steel Operations*
Flat Roll Division	580,967			623,156			2,541,251			2,375,469			663,045			653,075			644,164
Structural & Rail Division	266,941			198,363			1,018,426			826,661			247,133			242,627			261,725
Engineered Bar Division	122,156			93,333			502,169			357,241			125,350			124,132			130,531
Roanoke Bar Division	145,639			—			458,327			—			—			146,260			166,428
Steel of West Virginia	71,119			—			237,437			—			—			80,412			85,906
	1,186,822			914,852			4,757,610			3,559,371			1,035,528			1,246,506			1,288,754
Steel Fabrication Operations**	68,256			43,706			236,012			141,125			40,689			60,862			66,205
Other Operations***	115,043			80,685			420,169			319,323			73,196			122,595			109,335
Intercompany	(203,440		)	(119,665		)	(725,522		)	(426,087		)	(93,661		)	(208,388		)	(220,033		)
Consolidated shipments	1,166,681			919,578			4,688,269			3,593,732			1,055,752			1,221,575			1,244,261
Steel Operations* production	1,202,254			941,915			4,696,455			3,616,480			1,060,885			1,170,218			1,263,098
Average consolidated selling price per ton	$	720		$	619		$	691		$	608		$	631		$	672		$	733
Average Steel Operations* selling price per ton	674			596			656			587			611			639			693

*Steel Operations include the company’s Flat Roll Division, Structural and Rail Division, Engineered Bar Products Division, and after the effective date of the merger on April 12, 2006, also include Roanoke Bar Division and Steel of West Virginia operations.

**Steel Fabrication Operations include the company’s two joist and deck fabrication plants located in Indiana and Florida, and after the effective date of the merger on April 12, 2006, also include three additional joist fabrication plants located in Ohio, Virginia, and South Carolina.

***Other Operations include Iron Dynamics and Paragon Steel Enterprises, and after the effective date of the merger on April 12, 2006, also include the operations from two steel scrap processing facilities.

Steel Dynamics, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands)

	December 31, 2006			December 31, 2005
	(unaudited)
Assets
Current assets
Cash and equivalents	$	29,373		$	65,518
Accounts receivable	408,376			253,500
Inventories	569,317			386,892
Deferred income taxes	13,964			6,516
Other current assets	15,167			13,307
Total current assets	1,036,197			725,733
Property, plant and equipment, net	1,136,703			999,969
Restricted cash	5,702			1,588
Intangible assets	12,226			—
Goodwill	30,966			1,925
Other assets	25,223			28,472
Total assets	$	2,247,017		$	1,757,687
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	147,942		$	108,723
Income taxes payable	30,497			6,819
Accrued expenses	94,024			66,449
Accrued profit sharing	46,341			23,030
Current portion of long-term debt	80,686			2,156
Total current liabilities	399,490			207,177
Long-term debt
Senior unsecured 9.5% notes	300,000			300,000
Convertible subordinated 4.0% notes	37,500			115,000
Other long-term debt	16,920			17,960
Unamortized bond premium	3,772			5,459
Total long-term debt	358,192			438,419
Deferred income taxes	256,803			231,105
Minority interest	1,424			1,118
Commitments and contingencies
Stockholders’ equity
Common stock	537			529
Treasury stock, at cost	(230,472		)	(270,905		)
Additional paid-in capital	367,772			405,900
Retained earnings	1,093,271			744,344
Total stockholders’ equity	1,231,108			879,868
Total liabilities and stockholders’ equity	$	2,247,017		$	1,757,687

Steel Dynamics, Inc.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2006			2005			2006			2005
Operating activities:
Net income	$	105,066		$	64,937		$	396,707		$	221,785
Adjustments to reconcile net income to net cash providedby operating activities:
Depreciation and amortization	27,519			23,397			114,812			91,865
Stock option expense	2,233			—			7,479			—
Deferred income taxes	8,252			8,365			(478		)	22,230
Minority interest	(390		)	174			306			(1,351		)
Changes in certain assets and liabilities:
Accounts receivable	(5,178		)	(34,875		)	(72,277		)	361
Inventories	(11,591		)	(7,406		)	(66,240		)	(5,404		)
Accounts payable	(46,634		)	1,190			(9,787		)	(32,299		)
Income taxes payable	(3,349		)	3,764			13,974			6,553
Other working capital	25,546			32,452			19,073			7,016
Net cash provided by operating activities	101,474			91,998			403,569			310,756
Investing activities:
Purchase of property, plant and equipment	(44,264		)	(18,031		)	(128,618		)	(63,386		)
Acquisition of business, net of cash acquired	—			—			(89,106		)	—
Purchase of short-term investments	—			—			(14,075		)	—
Maturities of short-term investments	—			—			14,075			—
Other investing activities	69			—			311			1,345
Net cash used in investing activities	(44,195		)	(18,031		)	(217,413		)	(62,041		)
Financing activities:
Issuance of debt	265,000			—			330,000			268,706
Repayment of debt	(215,533		)	(36,299		)	(297,231		)	(276,510		)
Issuance of common stock (net of expenses) andproceeds and tax benefits from exercise of stock options	2,351			1,556			29,099			15,401
Purchase of treasury stock	(86,264		)	—			(246,624		)	(186,764		)
Dividends paid	(14,303		)	(4,310		)	(37,545		)	(18,276		)
Debt issuance costs	—			—			—			(2,088		)
Net cash used in financing activities	(48,749		)	(39,053		)	(222,301		)	(199,531		)
Increase (decrease) in cash and equivalents	8,530			34,914			(36,145		)	49,184
Cash and equivalents at beginning of period	20,843			30,604			65,518			16,334
Cash and equivalents at end of period	$	29,373		$	65,518		$	29,373		$	65,518
Supplemental disclosure of cash flow information:
Cash paid for interest	$	1,917		$	2,135		$	32,448		$	34,914
Cash paid for federal and state income taxes	$	70,392		$	20,060		$	226,354		$	110,160