Exhibit 99.1
[LOGO] Steel Dynamics, Inc:
Press Release 6714 Pointe Inverness Way, Suite 200
April 6, 2004 Fort Wayne, IN 46804-7932
260.459.3553 Phone
260.969.3590 Fax
www.steeldynamics.com
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Steel Dynamics Forecasts Strong 2004 Performance
FORT WAYNE, INDIANA, April 6, 2004 - (NASDAQ: STLD). At a presentation before a
meeting of the New York Metals Analyst Group in New York City today, Keith E.
Busse, President and Chief Executive Officer of Steel Dynamics, Inc., expressed
confidence that continued strong market demand and better than anticipated
contributions from the company's growth initiatives, point to record earnings in
2004 on a fully diluted basis.
In spite of a volatile scrap market that has seen scrap prices for No. 1 factory
bundles recede some $35 to $40 within the past two weeks, after reaching a
record $300-plus in March, Mr. Busse downplayed the impact of scrap surcharges
on results and emphasized that his 2004 positive outlook is a function of his
assessment of overall supply/demand market conditions and the fact that the
company's expansion projects are yielding positive results more rapidly than
anticipated.
Busse stated that when the company formally announced its scrap surcharge
program in February, it clarified that this temporary measure, which was
instituted with reluctance, was simply intended to neutralize the wild swings in
a runaway scrap market and would rise or fall in relationship to that market.
Following higher than anticipated steel demand in the first quarter, the company
is seeing continued strong demand. The order book is strong in the second
quarter, and Busse believes that as the year progresses, steel demand will
remain robust in a continued economic recovery. As a result, Steel Dynamics
should see continued strong profits throughout the remainder of the year, as
shipping volume continues to increase and price levels remain favorable.
The investments that the company has made in new production facilities over the
past several years has now begun to pay off, according to Busse. The Structural
and Rail Division, in its second full year of operation, is expected to make a
significant contribution to profits, and the new Bar Products Division which
started up at the end of 2003 is expected to be profitable before the end of
2004. The Flat Roll Division, which continues to perform extremely well, is
benefiting from the profitable start-ups of its new paint line and the third
galvanizing line at Jeffersonville. New Millennium Building Systems is
experiencing stronger sales and is expected to be profitable this year as well.
In addition, both iron-making projects hold great promise for the future,
helping to alleviate scrap resource pressures, as well as potentially provide
additional meaningful profitability to the company.
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Contact: Fred Warner, Investor Relations Manager,
(260) 969-3564 or fax (260) 969-3590
f.warner@steeldynamics.com
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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.
Contact: Fred Warner, Investor Relations Manager
(260) 969-3564 or fax (260) 969-3590
f.warner@steeldynamics.co