June 2009 -- Steel Dynamics, the fifth-largest carbon steel producer in the United States, had a first quarter 2009 loss of $88 million, compared to a net income of $143 million for the same period in 2008. Net sales for the quarter were $815 million, a drop of 57% from the first quarter of 2008. The company had a $83 million charge for an adjustment to raw materials inventory due principally to lower selling values for flat rolled steel.
The major factors affecting results, the company said, were a continued deterioration in steel shipping volumes and the consumption of scrap valued at levels much higher than current market prices.
"During the first quarter our steel mills operated at 46 percent of capacity, ferrous metals recycling at about 42 percent of processing capacity, and fabricating operations at about 45 percent," said Keith Busse, chairman and CEO of Steel Dynamics. "Unfortunately, we have still not seen clear signs of increasing demand, as our orders remain relatively steady month-to-month at these reduced rates."
Busse said the second quarter should result in a small profit and that the second half of the year should be profitable.
