Major North American flat rolled producer Steel Dynamics Inc. (SDI) announced this week that their net earnings for the first quarter of 2006 totaled $76 million, or $1.52 per diluted share, compared to $61 million, or $1.12 per diluted share, earned in the first quarter of 2005.
Net sales for Q1 2006 were $666 million, a 17 percent increase from net sales in Q1 2005.
The company attributes its first quarter success to the strong market for flat rolled products and an increased amount of steel shipments in the first quarter.
SDI president and CEO Keith Busse commented on the company's first quarter earnings:
"Steel Dynamics had a very strong first quarter which was our second best quarter to date. Revenue and net income exceeded our preliminary views principally due to a record volume of steel shipments. Our mills were able to take advantage of the continuing strong market demand for flat-rolled steel and wide-flange
beams, increasing
production rates and enjoying record shipping volumes."
Looking forward to the second quarter, Mr. Busse said, "We expect to see continued strength in the steel marketplace. Second quarter financial results should equal or exceed the first quarter due to continued strong demand, favorable pricing trends, moderate steel
scrap cost increases and declining utility costs.
SDI operates three electric arc furnace minimills, producing flat rolled steel at its primary mill. The company's other two mills produce structural steel and rail, and special bar quality (SBQ) steel. SDI sells to companies in the
automotive,
construction,
manufacturing, industrial machinery, and transportation industries, as well as to steel processors and service centers, primarily in the Midwestern US.