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Steel Dynamics Upgrades Fourth Quarter Outlook

Steel Dynamics, Inc. announced it anticipates stronger fourth quarter results than previously expected, with fourth quarter 2005 earnings per diluted share expected to be in the range of $1.20 to $1.25.

SDI attributes its improved earnings outlook to:

  • Improved margins and a strong operating performance by the Flat Roll Division
  • Increased demand in the non-residential construction market (which has positively impacted both the Structural and Rail Division and New Millennium Building Systems' performance).
  • Greater than anticipated shipments at the company's Bar Products Division.

SDI says the improvement in expected earnings has been driven by improved margins and a strong operating performance by the Flat Roll Division, increased demand in the non-residential construction market (which has positively impacted both the Structural and Rail Division and New Millennium Building Systems' performance), and greater than anticipated shipments at the company's Bar Products Division.

"We are entering the first quarter with strong backlogs for our flat-rolled and structural products and believe that service center inventories are now at reasonable levels," said Keith Busse, President and CEO of Steel Dynamics. "We will begin operating our new bar finishing facility in the first quarter of 2006 which we believe will drive continued improvement in shipments for our Bar Products Division in the new year."

SDI notes that it intends to file a registration statement on Form S-4 regarding the previously announced merger transaction with Roanoke Electric Steel Corp. SDI and Roanoke Electric intend to file a related proxy statement/prospectus. Investors and security holders may obtain copies of these documents (when they are available) at the SEC's website. In addition, investors and security holders may obtain copies of the documents filed with the SEC by SDI by contacting SDI Investor Relations at (260) 459-3553. Copies of the documents filed with the SEC by Roanoke may be obtained by contacting Roanoke Investor Relations at (540) 342-1831.