SDI reports third quarter 2005 earnings
Indiana-based Steel Dynamics Inc. (SDI) reported third quarter 2005 net sales declined 22 percent, due in large to higher energy costs, lower steel prices, and disruptions from Hurricane Katrina.. Net sales were $498.7 million, compared to net sales of $634.7 million in the third quarter of 2004, a decrease of 22 percent. Year-to-date net sales totaled $1.6 billion, an increase of four percent from the same period in 2004. Third quarter 2005 net earnings were $45 million, or $0.92 per diluted share, for the third quarter of 2005, a decrease of 60 percent over the company's third quarter 2004 net income of $113.6 million, or $2.01 per diluted share. Year-to-date net earnings totaled $156.8 million, a decrease of 26 percent for the same period in 2004. Keith Busse, president and CEO of Steel Dynamics said, "Overall, our third quarter performance was solid, in spite of a variety of challenges including higher natural gas and electricity costs and disruptions in production indirectly caused by Hurricane Katrina. On the other hand, we have seen positive developments in the steel marketplace. Commenting on SDIs fourth quarter outlook, he went on to say, Looking forward, we expect fourth quarter conditions to remain strong for the steel business. Demand has improved for beams as a result of stronger non-residential construction activity. We expect shipments for flat-rolled steel and building systems to remain strong and we expect some recovery in our bar-steel business. Overall, we are anticipating as much as a 20 percent increase in fourth quarter earnings." Founded in 1993, Steel Dynamics operates three steelmaking mini-mills, which produce a wide range of steel products, including flat-rolled products, such as hot-rolled, cold-rolled and coated steels; wide-flange beams and H-piling; rail; and special-bar-quality round bars. SDI also produces joist and decking products for the non-residential construction markets in two fabrication facilities.