April 20, 2006 — Steel Dynamics, Inc. announced earnings of $76 million on net sales of $666 million for the first quarter 2006.

The $76 million earnings ($1.52 per diluted share) compares to earnings of $61 million ($1.12 per diluted share) in the first quarter of 2005 and $65 million ($1.31 per diluted share) in the fourth quarter of 2005. Net sales of $666 million reflect an increase of 17% when compared to the year-ago first quarter and the previous quarter.

SDI's average consolidated selling price per ton shipped increased to $631 from $619 in the fourth quarter. The company attributes the increase to better price realizations and mix, with the effect mitigated by a $5 increase in the cost of steel scrap per net ton compared to the fourth quarter. Operating income per ton shipped was $124 with a net income margin of 11%. Cash flow from operations was very strong, increasing to $136 million, compared to $55 million in the first quarter of 2005 and $92 million in the fourth quarter of 2005.

First quarter consolidated shipments of 1.1 million tons were 24% higher than the first quarter of 2005 and 15% higher than the fourth quarter of 2005. Steel shipments for all of the company’s steelmaking units increased quarter over quarter.

"Steel Dynamics had a very strong first quarter, which was our second-best quarter to date," said Keith Busse, President and CEO. "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.

"In the second quarter 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," Busse stated.

Operating highlights for the first quarter included new monthly and quarterly flat roll and structural mill production records. During the quarter, the Structural and Rail Division successfully completed multiple rail rolling trials using blooms produced on new casting equipment. At Pittsboro, substantial progress was made in the construction of the new SBQ finishing facility, with the start-up of some finishing operations planned for this month.

As previously announced, Steel Dynamics completed its acquisition of Roanoke Electric Steel Corp. on April 11, 2006. As a result, Steel Dynamics is announcing new names for its bar steel operations: The name of the company’s SBQ bar division based in Pittsboro, Ind., has been changed from the Bar Products Division to Engineered Bar Products Division, and Roanoke Electric Steel in Roanoke, Va., has become the Roanoke Bar Division.

With the announced capacity increases at Columbia City and Butler, and the acquisition of Roanoke, SDI's new steel production potential, with all units running at full capability, will approach 6.0 million tons by the end of 2007.