March 13, 2007 — Higher shipping volumes and margins that are somewhat stronger than initially projected are prompting Steel Dynamics, Inc. to raise its estimate of first quarter 2007 earnings.

The company is revising its estimated range to $0.94 to $0.98 per share, about 10% higher than the preliminary first-quarter estimate of $0.85 to $0.90 per share made January 23, 2007, in the company's earnings release.

Diluted earnings per share was $1.03 per share in the previous quarter (fourth quarter of 2006), and $0.76 in the year-ago first quarter.

"Market conditions for flat-rolled steels have improved since mid-January with a recovery in both demand and pricing due in part to decreased import activity and lower inventories at steel service centers," said Keith Busse, President and CEO. "End-use market demand appears to be up slightly year-over- year in some sectors, yet relatively flat in others."

Both pricing and shipping volume have remained strong for long products, which includes structural steel, engineered bars, merchant bars, and specialty shapes. SDI expects margins in this sector to be slightly stronger than originally forecast. About half of SDI's shipments are long products, with the balance being flat-rolled products.

"Steel scrap prices are trending much higher in the first quarter than previously forecast," Busse said. “However, we currently expect to be able to maintain our margins in the second quarter. With continued strong order entry in the second quarter, the preliminary outlook is for a solid quarter. We continue to expect 2007 to be another strong year for SDI, with a higher volume of shipments and good prospects for continued strong margins."