August 30, 2008

SDI posts record results for 2007

Steel Dynamics Inc has announced strong fourth quarter and full year results for 2007. Its net sales in 2007 grew to a record USD 4.4 billion up by 35% YoY over 2006 net sales of USD 3.2 billion. Its 2007 net income was USD 395 million approximately the same as 2006’s net income of USD 397 million.

Its consolidated shipments increased by 32% YoY to 6.2 million tons of steel, fabricated steel, and ferrous and non ferrous scrap resources.

Mr Keith Busse chairman & CEO of Steel Dynamics Inc said that “Our 2007 results are indicative of our success as it relates to diversification and growth strategies. In a year when flat rolled steel, the largest market segment in the US steel industry, struggled, we experienced record consolidated results. Our strategy to diversify from the flat roll steel business that we started in the mid 1990s into a multi product steel producer has resulted in five steelmaking operations plus related steel processing, fabricating, scrap and virgin iron resource operations. Our steelmaking operations each produce distinct steel products that permit us to serve a variety of end markets. During 2007, while our shipments of flat rolled sheet declined 2% our structural steel volume increased 15% and shipments of engineered bars increased 9% netting a 4%YoY increase in steel shipments from our three Indiana mills that were owned and operated throughout 2006 and 2007. Total steel shipments, including acquired steelmaking operations, grew to 5.6 million tons in 2007 a 17% increase over 2006.”

He said that “Also contributing to SDI’s revenue growth were three noteworthy acquisitions in 2007: OmniSource Corporation, The Techs and Elizabethton Iron. The integration of these operations is proceeding well, and we anticipate further efficiencies to be realized throughout 2008.”