Steel Dynamics (STLD) 8-K Steel Dynamics Announces Strong First Quarter Results

Exhibit 99.1

Press Release	6714 Pointe Inverness Way, Suite 200
April 15, 2004	Fort Wayne, IN 46804-7932
	260.459.3553 Phone
	260.969.3590 Fax
	www.steeldynamics.com

Steel Dynamics Announces Strong First Quarter Results

FORT WAYNE, INDIANA, April 14, 2004– Steel Dynamics, Inc. (NASDAQ: STLD) today announced first quarter earnings of $32.0 million, or $.58 per diluted share, 103 percent higher than earnings of $15.8 million in the first quarter of 2003. Net sales for the first quarter of 2004 increased 63 percent to $384 million, compared to $236 million in the first quarter of 2003 and increased 38 percent as compared to $279 million recorded in the fourth quarter of 2003.

Improved pricing and increased shipments resulted in the quarter’s higher net sales and earnings. Shipping volume grew as a result of near-record shipments by the Flat Roll Division, record shipments by the Structural and Rail Division, and increasing shipments from the new Bar Products Division. First quarter consolidated shipments totaled 799,000 tons, 23 percent higher than the first quarter of 2003, and 3 percent higher than the fourth quarter. Flat Roll Division shipments were 570,000 tons, structural shipments were 198,000 tons, and bar shipments were 19,000 tons.

“The first quarter was a terrific quarter for Steel Dynamics,” said Keith Busse, president and chief executive officer. “The investments we have made in new production facilities over the past several years have begun to pay off. The Structural and Rail Division is performing very well, generating very solid earnings, and we expect the Bar Products Division to achieve profitability before year-end. Our Flat Roll Division continues to generate exceptionally strong profits. During the quarter, our new paint line at Butler and the galvanizing line at Jeffersonville ran well, both making strong contributions. Our wholly owned subsidiary, New Millennium Building Systems, was also profitable. Its stronger shipping volume and its continued market penetration serve as a positive indicator of improving non-residential construction activity.

“As has been widely reported, steel scrap costs and steel selling values increased significantly in the first quarter. A surcharge mechanism permitted us to recover most of the higher cost of the scrap that we purchased as a raw material during the quarter. In addition, base prices for steel increased substantially during the quarter. As scrap costs fall from their historical highs, the surcharge will continue to decline and may eventually disappear. We believe that, if scrap prices return to more normalized levels and steel market dynamics are permitted to determine price levels, our margins should improve in this rather strong market environment.”

In the first quarter, SDI’s average selling price from Steel Operations was $474 per ton which was $117 per ton higher than the first quarter of 2003 and $121 per ton higher than the fourth quarter of 2003. First quarter scrap costs increased approximately $93 per ton, compared to the first quarter of 2003, and increased approximately $65 per ton from the fourth quarter of 2003.

Revamping of the Pittsboro, Indiana, bar products mill is proceeding as planned, while production of large-diameter SBQ bars that began in December continues on a regular basis. Installation of a new eight-stand rolling mill has begun and the production of small merchant shapes should begin about mid-June. Meanwhile, marketing efforts at Bar Products are proving successful, with several potentially large customers expressing strong interest in both SBQ and merchant shape products.

Progress is also being made at Iron Dynamics which has continued production of hot-briquetted iron in the first quarter, and is now in the start-up phase for the submerged-arc furnace which converts HBI into liquid pig iron. The HBI produced by Iron Dynamics is also currently being used as a substitute for scrap and pig iron in the Butler melt shop.

“Following higher than anticipated steel demand in the first quarter,” Busse concluded, “we are continuing to see very strong bookings for the second quarter and believe that, as the year progresses, steel demand will remain solid as the economy continues to recover. As a result, Steel Dynamics should see continued profit growth throughout the rest of the year, as our shipping volume continues to increase and price levels remain favorable. Although steel selling values may moderate somewhat as resource costs decline from these extraordinarily high levels, we believe market forces will permit us to maintain or increase our margins in the coming three quarters, with the possibility of achieving full-year earnings well in excess of our previous best.”

Conference Call and Webcast

On Thursday, April 15, 2004 at 11:00 am Eastern, Steel Dynamics will host a conference call in which Steel Dynamics’ management will discuss first quarter, 2004 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.

Annual Meeting

Our 2004 Annual Meeting will be held at 10:00 am EDT (9:00 am Central) at the Grand Wayne Center in Fort Wayne, Indiana. The meeting will be broadcast live over the Internet, accessible from our Web site. Notice of the meeting and the proxy statement are available in the Investor Relations area of our Web site.

Contact:	Fred Warner, Investor Relations Manager, (260) 969-3564 or fax (260) 969-3590
	f.warner@steeldynamics.com

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, the timing of construction and operation of new or existing facilities, and the extent and timing of introduction and customer acceptance of new products. 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.

We refer you to SDI’s detailed explanation of the many 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.

Steel Dynamics, Inc.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)

	Quarter Ended
	March 31,
	2004		2003
	(unaudited)
Net sales	$	384,145	$	235,504
Cost of goods sold		302,555		185,969
Selling, general and administrative expenses		23,050		14,975
Operating income		58,540		34,560
Interest expense		9,504		9,166
Other (income) expense, net		(2,103)		149
Income before income taxes		51,139		25,245
Income taxes		19,177		9,467
Net income	$	31,962	$	15,778
Basic earnings per share:
Net income	$	.65	$	.33
Weighted average common shares outstanding		48,947		47,601
Diluted earnings per share:
Net income and effect of assumed conversions	$	.58	$	.33
Weighted average common shares
and share equivalents outstanding		56,212		47,786

Steel Dynamics, Inc.
UNAUDITED SUPPLEMENTAL OPERATING INFORMATION

	Quarter Ended
	March 31,
	2004			2003
Shipments (tons)
Steel Operations*		787,478			641,401
Other Operations**		92,888			44,365
Intercompany		(81,738	)		(37,652	)
Consolidated		798,628			648,114
Steel Operations* production (tons)		809,975			685,432
Average consolidated selling price per ton (dollars)	$	481		$	363
Operating profit per ton shipped*** (dollars)		81			54
Start-up costs (thousands of dollars)	$	5,140		$	486

*	Steel Operations include the company’s Flat Roll Division, Structural and Rail Division and Bar Products Division.
**	Other Operations include New Millennium Building Systems, Paragon Steel Trading and Iron Dynamics.
***	Operating profit per ton shipped represents operating income before start-up costs and minority interest
	adjustments divided by consolidated shipments.

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

	March 31,			December 31,
	2004			2003
	(unaudited)
Assets
Current assets:
Cash and equivalents	$	58,294		$	65,430
Accounts receivable		164,596			126,023
Inventories		235,989			184,496
Deferred income taxes		13,224			23,217
Other current assets		15,839			8,769
Total current assets		487,942			407,935
Property, plant and equipment, net		1,007,068			1,001,116
Restricted cash		4,211			2,636
Other assets		35,565			36,752
Total assets	$	1,534,786		$	1,448,439
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	128,589		$	79,326
Accrued interest		8,247			11,312
Accrued expenses		45,466			46,678
Current portion of long-term debt		16,077			15,988
Total current liabilities		198,379			153,304
Long-term debt, including unamortized bond premium of $8,413 and
$8,834 at March 31, 2004 and December 31, 2003, respectively		587,777			591,586
Deferred income taxes		117,378			115,703
Minority interest		1,262			613
Commitments & contingencies
Stockholders’ equity:
Common stock		515			509
Treasury stock, at cost		(28,908	)		(28,670	)
Additional paid-in capital		372,408			362,328
Retained earnings		289,216			257,254
Other accumulated comprehensive loss		(3,241	)		(4,188	)
Total stockholders’ equity		629,990			587,233
Total liabilities and stockholders’ equity	$	1,534,786		$	1,448,439

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

	Quarter Ended
	March 31,
	2004			2003
	(unaudited)
Operating activities:
Net income	$	31,962		$	15,778
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization		18,779			16,276
Deferred income taxes		11,668			5,244
Minority interest		649			(651	)
Changes in certain assets and liabilities:
Accounts receivable		(38,573	)		(3,466	)
Inventories		(51,493	)		(14,480	)
Accounts payable		49,263			16,130
Other working capital		(11,590	)		(10,164	)
Net cash provided by operating activities		10,665			24,667
Investing activities:
Purchase of property, plant and equipment		(23,905	)		(37,435	)
Other investing activities		–			(8,291	)
Net cash used in investing activities		(23,905	)		(45,726	)
Financing activities:
Issuance of long-term debt		29,939			21,712
Repayment of long-term debt		(33,659	)		(21,418	)
Issuance of common stock (net of expenses) and proceeds
and tax benefits from exercise of stock options		10,086			1,007
Treasury stock purchase		(238	)		(176	)
Debt issuance costs		(24	)		(1,043	)
Net cash provided by financing activities		6,104			82
Decrease in cash and equivalents		(7,136	)		(20,977	)
Cash and equivalents at beginning of period		65,430			24,218
Cash and equivalents at end of period	$	58,294		$	3,241