SDI Melting at Full Speed

Steel Dynamics Inc. (SDI), Fort Wayne, Ind., is making steel at record production levels and has a full order book of sales for the current quarter, according to company officials.

The company has announced first quarter 2002 earnings of $4.4 million and is hinting at more positive financial results to come. “Our business experienced considerable improvement in the first quarter, hopefully beginning a rebound from the difficult environment we experienced in 2001,” says Keith Busse, president and CEO of the electric arc furnace (EAF) steelmaker.

 “Our March results were very strong as a result of higher production and shipment levels combined with improved product pricing and lower scrap costs,” he comments. “We are currently producing at capacity at our Butler, Ind., facility. Pricing for shipments and orders continued to strengthen throughout the first quarter.”

By comparison to the fourth quarter of 2001, SDI’s first quarter flat-roll mill shipments increased from 462,000 tons to 551,00 tons, up 19 percent, while hot-band production increased from 463,000 tons to 580,000 tons, up 25 percent.

“The market for our products has become more resilient over the past several months,” Busse says. “Our order book for the second quarter has been full for some time now at significantly higher selling values than those achieved in the first quarter,” Busse continues.“We will shortly be opening our order book for the third quarter and we anticipate continued heavy product demand. We have resumed our usual practice of accepting and scheduling orders a quarter in advance after several quarters of weak activity in 2001.

Busse also notes that construction of SDI’s $315 million structural steel and rail mill at Columbia City, Ind., has proceeded rapidly since the project started in May of 2001.