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Steel Dynamics Announces
Strong First Quarter Results

April 15, 2004 — Steel Dynamics, Inc. announced earnings of $32.0 million on net sales of $384 million for the first quarter of 2004.

Earnings of $32.0 million ($.58 per diluted share) are 103% higher than earnings of $15.8 million in the first quarter of 2003. Net sales, $384 million, represent a 63% increase compared to $236 million in the first quarter of 2003, and a 38% increase 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% higher than the first quarter of 2003, and 3% 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 CEO. "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 — $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, Ind., bar products mill is proceeding as planned, with production of large-diameter SBQ bars continuing on a regular basis. Installation of a new eight-stand rolling mill has begun and 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.

Iron Dynamics 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. HBI produced by Iron Dynamics is 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."

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