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Last updated on April 20, 2014 at 8:28 EDT

Steel Dynamics Reports Fourth Quarter 2012 Diluted Earnings Per Share of $0.27

January 28, 2013

FORT WAYNE, Ind., Jan. 28, 2013 /PRNewswire/ — Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced fourth quarter 2012 net income of $61 million, or $0.27 per diluted share, on net sales of $1.7 billion. By comparison, prior year fourth quarter net income was $30 million, or $0.14 per diluted share, on net sales of $1.9 billion, and sequential third quarter 2012 net income was $13 million, or $0.06 per diluted share, on net sales of $1.7 billion. Full-year 2012 net income was $164 million, or $0.73 per diluted share, on net sales of $7.3 billion, compared to prior year net income of $278 million, or $1.22 per diluted share, on net sales of $8.0 billion.

Fourth quarter 2012 results included certain positive tax adjustments of $16 million, or $0.07 per diluted share, which was slightly higher than the company’s previous estimate for the adjustments of $0.06 per diluted share. Excluding these adjustments the company’s fourth quarter effective tax rate was 39.5 percent.

“Similar to the rest of 2012, the fourth quarter was challenging on a number of fronts,” said President and Chief Executive Officer, Mark Millett, “but the team did a great job. We are pleased our fourth quarter financial performance was stronger than originally anticipated. On a sequential quarterly basis our operating income increased 31 percent to $95 million, primarily driven by improvements in our metals recycling and sheet steel operations.

“In our December guidance, we suggested that metals recycling was expected to deliver a stronger financial performance in the fourth quarter, and the team’s execution was even better than anticipated,” stated Millett. “Sequential quarterly operating income increased 56 percent to $26 million, as meaningful improvements in both ferrous and nonferrous metal spreads more than offset decreased volumes. Increased copper margins provided the most notable improvement, as global copper prices increased based in part on improved demand from China. We also took advantage of a strong December ferrous market environment, increasing our expected shipments, as it appeared the typical market strength of January was being challenged.

“Our steel operations also showed improvement with an increase in operating income of seven percent to $117 million, as improvements in sheet steel volumes more than offset weaker long product shipments and lower overall steel metal spreads. Automotive and manufacturing provided improved sheet demand, while nonresidential construction remained weak. Despite the challenging construction market, we are also pleased that our fabrication business reported its third consecutive profitable quarter, as the changes the team implemented earlier in the year have continued to provide greater efficiencies and improved productivity.

“The company’s solid performance in a difficult market environment is driven by our ongoing commitment to provide exceptional value to our customers, while taking advantage of our innovative, low-cost operating culture. We remain committed to leveraging the full complement of our competitive strengths to sustain and grow shareholder value,” Millett concluded.

Fourth Quarter Review

Fourth quarter shipments were mixed across the company’s operating segments when compared to the prior-year fourth quarter and the third quarter of 2012. However, with the exception of fabrication, pretax earnings improved for each business platform. The company’s operating income increased 15 percent over prior-year performance and 31 percent in comparison to the third quarter of 2012. The increase in sequential quarterly operating income was primarily the result of increased volume coupled with reduced costs in sheet operations, and increased nonferrous margins coupled with reduced direct costs in metals recycling.

The company’s steel mill capacity utilization improved to 80 percent in the fourth quarter from 78 percent in the third quarter, while shipments increased four percent. Improved overall volume and product mix more than offset decreased steel margins, resulting in increased operating income of $8 million in the quarter. The average selling price per ton shipped decreased $25 to $784 in the fourth quarter, and the average ferrous scrap cost per ton melted decreased $9 per ton. Operating income attributable to the company’s sheet operations increased 15 percent when compared to the sequential quarter, while earnings from long product operations decreased three percent.

Despite lower volumes, profitability from the company’s metals recycling operations improved as ferrous metal spreads expanded ten percent and nonferrous metal spreads improved 24 percent when compared to the third quarter of 2012.

The impact of losses from the company’s Minnesota operations on fourth quarter 2012 consolidated net income was approximately $10 million, or $0.04 per diluted share. This compares to losses of $11 million, or approximately $0.05 per diluted share in the third quarter of 2012. As previously indicated, a six week outage of the nugget facility began in mid-September 2012 to complete the groundwork necessary for the implementation of improvements expected to be made in the first half of 2013. These modifications are expected to improve both volume and product quality. As planned, operations resumed in November, and the restart has gone well with significant improvements to product quality already achieved.

Operations began at the company’s iron concentrate facility in September 2012 and production has gone well. As the primary raw material for the company’s iron nugget facility, this is a pivotal achievement in lowering the raw material input cost of iron nuggets, as the cost of internally-sourced iron concentrate is less than $50 per metric ton compared to current market priced iron concentrate in excess of $140 per metric ton. If pig iron prices remain steady, losses associated with the Minnesota operations for the first quarter of 2013 are anticipated to be similar to those recorded in the fourth quarter, as the plant depletes existing higher priced third-party iron concentrate in inventory.

The company’s liquidity position remains strong with $1.5 billion in unrestricted cash, short term commercial paper, and available funding under the revolving credit facility at December 31, 2012. Total debt decreased $178 million during 2012, and the company’s debt to equity capitalization rate improved from 50 percent at the end of 2011 to 47 percent at December 31, 2012.

Full-Year Review

The company’s 2012 net sales decreased nine percent when compared to 2011, while operating income decreased 33 percent. Decreased operating income was primarily driven by reduced operating margins in the company’s sheet operations during the first half of 2012, as compared to the record metal spreads achieved in the first half of 2011. The average annual selling price per ton shipped for the company’s steel operations in 2012 was $831, a decrease of $66 per ton compared to 2011. The 2012 average scrap cost per ton melted decreased $32. Operating income from the company’s metals recycling operations also decreased 23 percent during 2012, as both volumes and metal margins compressed.

Charges associated with the company’s 2012 refinancing initiatives resulted in decreased pretax earnings of approximately $38 million, or approximately $0.10 per diluted share. These initiatives significantly reduced the company’s cost of debt, while extending the company’s long term debt maturity profile.

Outlook

“We remain optimistic that the organic growth projects we identified in 2012 will position us to continue to build a strong enterprise,” Millett said. “We believe there is potential for certain market sectors, such as automotive and manufacturing, to build momentum in 2013. Recent housing start data suggests potential improvements in residential construction, and there are areas across the U.S. indicating signs of strengthening in the nonresidential construction sector, although levels remain historically low. We look forward to executing our strategic growth plans. Demand for high-quality steel products has not abated, and we believe our current capital projects will deliver products that exceed customers’ expectations. We remain confident that with our exceptional team, coupled with our superior, low-cost operating culture, we are uniquely prepared to capitalize on the opportunities ahead.”

Summary Fourth Quarter and Full-Year 2012 Operating Segment Information

The following tables highlight operating results for each of the company’s primary operating platforms. References to operating income in the following paragraphs exclude profit-sharing expenses and amortization pertaining to intangible assets. Dollar amounts are in thousands, excluding per ton data.

Steel Operations

This segment includes five electric-arc-furnace steel mills and related steel finishing and processing facilities, including The Techs. The company’s steel operations produce flat-rolled steel, structural steel, merchant bars, special-bar-quality steel, rebar, rail, and specialty shapes.

                                             Fourth Quarter               Full Year            Sequential
                                             --------------               ---------
                                                2012              2011       2012         2011            3Q 2012
                                                ----              ----       ----         ----            -------
                              Total Sales $1,126,438        $1,236,330 $4,782,240   $5,162,806                   $1,120,571
                           External Sales  1,061,419         1,168,868  4,506,788    4,859,217                    1,051,349
                         Operating Income    117,097           117,434    505,080      668,341                      109,215
                   Total Shipments (tons)  1,457,053         1,465,962  5,832,776    5,842,694                    1,405,021
     Average External Sales Price Per Ton       $784              $853       $831         $897                         $809
       Average Ferrous Scrap Cost Per Ton       $343              $407       $378         $410                         $352

Metals Recycling and Ferrous Resources Operations

This segment principally includes the company’s metals recycling operations (OmniSource Corporation), a liquid pig iron production facility (Iron Dynamics), and the company’s Minnesota operations.

    Metals Recycling & Ferrous Resources                                        Fourth Quarter            Full Year              Sequential
                                                                                --------------          ---------
                                                                                  2012              2011           2012        2011         3Q 2012
                                                                                  ----              ----           ----        ----         -------
                                                                 Total Sales  $798,163          $908,436     $3,658,952  $4,157,525                  $821,357
                                                              External Sales   530,258           593,181      2,342,598   2,769,063                   522,231
                                                     Operating Income (Loss)       507            (6,508)       (11,690)     54,723                    (9,461)

    Metals Recycling                                                            Fourth Quarter            Full Year                Sequential
                                                                                --------------            ---------
                                                                                  2012              2011           2012        2011          3Q 2012
                                                                                  ----              ----           ----        ----          -------
                                                                 Total Sales  $741,342          $856,481     $3,441,348  $3,940,693                  $766,102
                                                              External Sales   520,931           592,951      2,329,096   2,768,833                   519,101
                                                            Operating Income    25,818            15,715         72,473      94,543                    16,566
                                           Unrealized Hedging Gains (Losses)     9,820            (2,659)         3,588       3,768                    (9,315)
                                              Ferrous Shipments (gross tons) 1,238,143         1,314,588      5,647,058   5,879,729                 1,339,853
                                              % Shipments to Co. Steel Mills        46%               44%            46%         43%                       43%
                                         Nonferrous Shipments (pounds 000's)   251,080           255,137      1,051,333   1,066,648                   249,685

Steel Fabrication Operations

Steel fabrication operations include New Millennium Building Systems, which fabricates steel joists, trusses, and decking used in the construction of non-residential buildings.

                                           Fourth Quarter          Full Year          Sequential
                                           --------------          ---------
                                             2012            2011         2012     2011          3Q 2012
                                             ----            ----         ----     ----          -------
                              Total Sales $98,301         $78,684     $371,406 $276,408                  $102,442
                  Operating Income (Loss)   1,448          (1,820)       2,114   (6,584)                    3,141
                   Total Shipments (tons)  76,870          61,428      295,161  217,838                    80,176
     Average External Sales Price Per Ton  $1,278          $1,281       $1,258   $1,270                    $1,278

About Steel Dynamics, Inc.

Steel Dynamics, Inc. is one of the largest domestic steel producers and metals recyclers in the United States based on estimated annual steelmaking and metals recycling capability, with annual sales of $7.3 billion in 2012, over 6,600 employees, and manufacturing facilities primarily located throughout the United States (including five steel mills, six steel processing facilities, two iron production facilities, over 70 metals recycling locations and six steel fabrication plants).

Forward-Looking Statement

This press release contains some predictive statements about future events, including statements related to conditions in the steel and metallic scrap markets, Steel Dynamics’ revenues, costs of purchased materials, future profitability and earnings, and the operation of new or existing facilities. These statements are intended to be made as “forward-looking,” subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These statements speak only as of this date and are based upon information and assumptions, which we consider reasonable as of this date, concerning our businesses and the environments in which they operate. Such predictive statements are not guarantees of future performance, and we undertake no duty to update or revise any such statements. Some factors that could cause such forward-looking statements to turn out differently than anticipated include: (1) the effects of a prolonged or deepening recession on industrial demand; (2) changes in economic conditions, either generally or in any of the steel or scrap-consuming sectors which affect demand for our products, including the strength of the non-residential and residential construction, automotive, appliance, and other steel-consuming industries; (3) fluctuations in the cost of key raw materials (including steel scrap, iron units, and energy costs) and our ability to pass-on any cost increases; (4) the impact of domestic and foreign import price competition; (5) risks and uncertainties involving product and/or technology development; and (6) occurrences of unexpected plant outages or equipment failures.

More specifically, we refer you to SDI’s more detailed explanation of these and other factors and risks that may cause such predictive statements to turn out differently, as set forth in our most recent Annual Report on Form 10-K, in our quarterly reports on Form 10-Q or in other reports which we from time to time file with the Securities and Exchange Commission. These are available publicly on the SEC Web site, www.sec.gov, and on the Steel Dynamics Web site, www.steeldynamics.com.

Conference Call and Webcast

On Tuesday, January 29, 2013, at 9:30 a.m. Eastern Time, Steel Dynamics will host a conference call with investors and analysts to discuss the company’s fourth quarter and full-year 2012 operating and financial results. We invite you to listen to the live audiocast of the conference call accessible from our website (http://www.steeldynamics.com/), or via telephone (the conference call number may also be obtained on our website). A replay of the discussion will be available on our website until midnight on February 5, 2013. A podcast of the event will also be available and can be downloaded from our website.

                                                                            Steel Dynamics, Inc.
                                                               CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
                                                                   (in thousands, except per share data)

                                                                                                                                                           Three Months
                                                                                   Three Months Ended                        Year Ended                       Ended
                                                                                      December 31,                          December 31,                   September 30,
                                                                                      ------------                          ------------
                                                                                      2012                     2011                   2012             2011                      2012
                                                                                      ----                     ----                   ----             ----                      ----

    Net sales                                                                 $1,705,001               $1,858,345             $7,290,234       $7,997,500                $1,693,390
    Costs of goods sold                                                        1,524,904                1,698,210              6,570,336        7,065,982                 1,536,989
                                                                               ---------                ---------              ---------        ---------                 ---------
            Gross profit                                                         180,097                  160,135                719,898          931,518                   156,401

    Selling, general and administrative expenses                                  69,340                   61,947                257,943          263,595                    62,984
    Profit sharing                                                                 6,750                    6,064                 26,987           43,149                     3,954
    Amortization of intangible assets                                              8,722                    9,634                 35,553           39,954                     8,848
    Impairment charges                                                  356                        -                  8,250                  -                  7,894
                                                                        ---                      ---                  -----                ---                  -----
            Operating income                                                      94,929                   82,490                391,165          584,820                    72,721

    Interest expense, net of capitalized interest                                 34,877                   44,117                158,585          176,977                    41,490
    Other expense (income), net                                                   (3,852)                  (2,641)                28,514          (16,476)                   24,010
                                                                                  ------                   ------                 ------          -------                    ------
            Income before                                                         63,904                   41,014                204,066          424,319                     7,221
              income taxes

    Income taxes                                                                   8,810                   15,235                 61,785          158,627                     1,116
                                                                                   -----                   ------                 ------          -------                     -----
            Net income                                                            55,094                   25,779                142,281          265,692                     6,105

    Net loss attributable to noncontrolling interests                              5,477                    4,424                 21,270           12,428                     6,728

            Net income attributable                                  60,571                                         163,551
             to Steel Dynamics, Inc.                                      $                               $30,203         $                      $278,120                   $12,833
                                                                        ===                                             ===

    Basic earnings per share attributable to Steel
     Dynamics, Inc. stockholders                                                    $.28                     $.14                   $.75            $1.27                      $.06

    Weighted average common shares outstanding                                   219,346                  218,718                219,159          218,471                   219,191
                                                                                 =======                  =======                =======          =======                   =======

    Diluted earnings per share attributable to Steel
     Dynamics, Inc. stockholders, including the effect of
     assumed conversions when dilutive                                              $.27                     $.14                   $.73            $1.22                      $.06

    Weighted average common shares and equivalents outstanding                   236,890                  219,336                236,624          235,992                   220,044
                                                                                 =======                  =======                =======          =======                   =======

    Dividends declared per share                                                    $.10                     $.10                   $.40             $.40                      $.10

                                                                                                                                                                                                                                   Steel Dynamics, Inc.
                                                                                                                                                                                                                       UNAUDITED SUPPLEMENTAL OPERATING INFORMATION
                                                                                                                                                                                                                                  (dollars in thousands)

                                                                                                                                                                 Quarter Ended                                 Year Ended                                  Quarter Ended                                Quarter Ended                                  Quarter Ended
                                                                                                                                                                 December 31,                                 December 31,                                   March 31,                                    June 30,                                     September 30,
                                                                                                                                                                                    2012                                         2011                                         2012                                         2011                                              2012                                              2012                                               2012
                                                                                                                                                                                    ----                                         ----                                         ----                                         ----                                              ----                                              ----                                               ----
    Steel Operations*

    Shipments (tons)
                                                                                        Flat Roll Division                                                                     713,770                                      678,961                                    2,717,995                                    2,770,466                                           658,505                                           706,944                                            638,776
                                                                                         Structural and Rail
                                                                                         Division
                                                                                        Structural                                                                             225,100                                      229,748                                      887,335                                      761,682                                           227,059                                           214,347                                            220,829
                                                                                        Rail                                                                                    37,341                                       20,854                                      144,169                                      117,463                                            33,947                                            38,177                                             34,704
                                                                                         Engineered Bar Products
                                                                                         Division                                                                               98,858                                      171,020                                      535,882                                      634,964                                           157,489                                           166,208                                            113,327
                                                                                        Roanoke Bar Division                                                                   127,952                                      129,113                                      581,180                                      544,384                                           151,296                                           149,010                                            152,922
                                                                                        Steel of West Virginia                                                                  73,581                                       74,477                                      301,730                                      297,902                                            77,212                                            74,456                                             76,481
                                                                                        The Techs                                                                              180,451                                      161,789                                      664,485                                      715,833                                           144,615                                           171,437                                            167,982

                                                                                        Total                                                                                1,457,053                                    1,465,962                                    5,832,776                                    5,842,694                                         1,450,123                                         1,520,579                                          1,405,021
                                                                                           Intra-company                                                                      (102,772)                                     (96,458)                                    (409,612)                                    (422,958)                                          (94,176)                                         (106,875)                                          (105,789)
                                                                                                                                                                                                                                                                                                                     --------
                                                                                        External                                                                             1,354,281                                    1,369,504                                    5,423,164                                    5,419,736                                         1,355,947                                         1,413,704                                          1,299,232
                                                                                                                                                                             =========                                    =========                                    =========                                    =========                                         =========                                         =========                                          =========

    Production, excluding The Techs (tons)                                                                                                                                   1,290,567                                    1,307,117                                    5,228,190                                    5,218,552                                         1,351,818                                         1,328,290                                          1,257,515

    Net sales
                                                                                        Total                                                                               $1,126,438                                   $1,236,330                                   $4,782,240                                   $5,162,806                                        $1,254,464                                        $1,280,767                                         $1,120,571
                                                                                           Intra-company                                                                       (65,019)                                     (67,462)                                    (275,452)                                    (303,589)                                          (67,744)                                          (73,467)                                           (69,222)

                                                                                        External                                                                            $1,061,419                                   $1,168,868                                   $4,506,788                                   $4,859,217                                        $1,186,720                                        $1,207,300                                         $1,051,349

    Operating income before                                                                                                                                                   $117,097                                     $117,434                                     $505,080                                     $668,341                                          $139,740                                          $139,028                                           $109,215
     amortization of intangibles
                                                                                         Amortization of
                                                                                         intangibles                                                                            (2,289)                                      (2,431)                                      (9,440)                                     (10,221)                                           (2,432)                                           (2,431)                                            (2,288)
    Operating income (Note 1)                                                                                                                                                 $114,808                                     $115,003                                     $495,640                                     $658,120                                          $137,308                                          $136,597                                           $106,927
                                                                                                                                                                              ========                                     ========                                     ========                                     ========                                          ========                                          ========                                           ========

    Metals Recycling and Ferrous Resources**

    OmniSource
      Ferrous metals shipments (gross tons)
                                                                                        Total                                                                                1,238,143                                    1,314,588                                    5,647,058                                    5,879,729                                         1,582,840                                         1,486,222                                          1,339,853
                                                                                           Intra-company                                                                      (573,293)                                    (585,484)                                  (2,586,670)                                  (2,564,699)                                         (763,767)                                         (666,668)                                          (582,942)

                                                                                        External                                                                               664,850                                      729,104                                    3,060,388                                    3,315,030                                           819,073                                           819,554                                            756,911

      Non-ferrous metals shipments
       (thousands of pounds)
                                                                                        Total                                                                                  251,080                                      255,137                                    1,051,333                                    1,066,648                                           291,636                                           258,932                                            249,685
                                                                                           Intra-company                                                                        (3,456)                                      (2,230)                                     (18,488)                                      (8,273)                                           (1,958)                                           (4,598)                                            (8,476)

                                                                                        External                                                                               247,624                                      252,907                                    1,032,845                                    1,058,375                                           289,678                                           254,334                                            241,209

    Mesabi Nugget shipments                                                                                                                                                     36,481                                       52,943                                      168,633                                      159,641                                            46,230                                            33,840                                             52,082
     (metric tons) - Intra-company

    Iron Dynamics (metric tons) - Intra-company                                                                                                                                 57,117                                       47,471                                      226,396                                      229,502                                            56,628                                            59,103                                             53,548
                                                                                                                                                                                ======                                       ======                                      =======                                      =======                                            ======                                            ======                                             ======

    Net sales
                                                                                        Total                                                                                 $798,163                                     $908,436                                   $3,658,952                                   $4,157,525                                        $1,112,340                                          $927,092                                           $821,357
                                                                                           Intra-company                                                                      (267,905)                                    (315,255)                                  (1,316,354)                                  (1,388,462)                                         (412,740)                                         (336,583)                                          (299,126)

                                                                                        External                                                                              $530,258                                     $593,181                                   $2,342,598                                   $2,769,063                                          $699,600                                          $590,509                                           $522,231

    Operating income (loss) before                                                                                                                                                $507                                      $(6,508)                                    $(11,690)                                     $54,723                                           $10,399                                          $(13,135)                                           $(9,461)
     amortization of intangibles
                                                                                         Amortization of
                                                                                         intangibles                                                                            (6,110)                                      (6,882)                                     (24,818)                                     (28,126)                                           (6,236)                                           (6,236)                                            (6,236)

    Operating income (loss) (Note 1)                                                                                                                                           $(5,603)                                    $(13,390)                                    $(36,508)                                     $26,597                                            $4,163                                          $(19,371)                                          $(15,697)
                                                                                                                                                                               =======                                     ========                                     ========                                      =======                                            ======                                          ========                                           ========

    Steel Fabrication***

    Shipments (tons)
                                                                                        Total                                                                                   76,870                                       61,428                                      295,161                                      217,838                                            60,183                                            77,932                                             80,176
                                                                                           Intra-company                                                                          (187)                                         (11)                                        (242)                                        (632)                                               (2)                                                -                                                (53)

                                                                                        External                                                                                76,683                                       61,417                                      294,919                                      217,206                                            60,181                                            77,932                                             80,123

    Net sales
                                                                                        Total                                                                                  $98,301                                      $78,684                                     $371,406                                     $276,408                                           $74,896                                           $95,767                                           $102,442
                                                                                           Intra-company                                                                          (277)                                         (13)                                        (322)                                        (625)                                               (4)                                                -                                                (41)

                                                                                        External                                                                               $98,024                                      $78,671                                     $371,084                                     $275,783                                           $74,892                                           $95,767                                           $102,401

    Operating income (loss) (Note 1)                                                                                                                                            $1,448                                      $(1,820)                                      $2,114                                      $(6,584)                                          $(2,668)                                             $193                                             $3,141
                                                                                                                                                                                ======                                      =======                                       ======                                      =======                                           =======                                              ====                                             ======

    *     Steel Operations include the company's five steelmaking divisions and The Techs three galvanizing plants.
    **   Metals Recycling and Ferrous Resources Operations include OmniSource; Iron Dynamics (all shipments are internal); and Minnesota Operations,
           including Mesabi Nugget (all shipments have been internal).
    ***  Steel Fabrication Operations include the company's joist and deck fabrication operations.
    (Note 1) Segment operating income (loss) excludes profit sharing expense.

                                                                          Steel Dynamics, Inc.
                                                                       CONSOLIDATED BALANCE SHEETS
                                                                             (in thousands)

                                                                                                                                                                      December 31,              December 31,
                                                                                                                                                                              2012                      2011
                                                                                                                                                                              ----                      ----
                                                                                                                                                                      (unaudited)
                                                                                 Assets
    Current assets
            Cash and equivalents                                                                                                                                                      $375,917                     $390,761
            Investments in short-term commercial paper                                                                                                                                  31,520                       84,830
            Accounts receivable, net                                                                                                                                                   642,363                      722,791
            Inventories                                                                                                                                                              1,202,507                    1,199,584
            Deferred income taxes                                                                                                                                                       23,449                       25,341
            Income taxes receivable                                                                                                                                                        893                       16,722
            Other current assets                                                                                                                                                        19,576                       15,229
                                                                                                                                                                                        ------                       ------
                         Total current assets                                                                                                                                        2,296,225                    2,455,258

    Property, plant and equipment, net                                                                                                                                               2,231,198                    2,193,745

    Restricted cash                                                                                                                                                                     27,749                       26,528

    Intangible assets, net                                                                                                                                                             416,635                      450,893

    Goodwill                                                                                                                                                                           738,542                      745,066

    Other assets                                                                                                                                                                       105,067                      107,736
                                                                                                                                                                                       -------                      -------
                        Total assets                                                                                                                                                $5,815,416                   $5,979,226
                                                                                                                                                                                    ==========                   ==========

                                                                         Liabilities and Equity
    Current liabilities
            Accounts payable                                                                                                                                                          $360,097                     $420,824
            Income taxes payable                                                                                                                                                        16,941                       10,880
            Accrued expenses                                                                                                                                                           179,702                      185,964
            Accrued profit sharing                                                                                                                                                      23,306                       38,671
            Current maturities of long-term debt                                                                                                                                        29,631                      444,078
                                                                                                                                                                                        ------                      -------
                         Total current liabilities                                                                                                                                     609,677                    1,100,417

    Long-term debt
            Term note                                                                                                                                                                  247,500                            -
            7 (3)/8% senior notes, due 2012                                                                                                                                                  -                      261,250
            5.125% convertible senior notes, due 2014                                                                                                                                  287,496                      287,500
            6 3/4% senior notes, due 2015                                                                                                                                              500,000                      500,000
            7 3/4% senior notes, due 2016                                                                                                                                                    -                      500,000
            6 (1)/8% senior notes, due 2019                                                                                                                                            400,000                            -
            7 5/8% senior notes, due 2020                                                                                                                                              350,000                      350,000
            6 (3)/8% senior notes, due 2022                                                                                                                                            350,000                            -
            Other long-term debt                                                                                                                                                        37,610                       37,272
                                                                                                                                                                                        ------                       ------
                         Total long-term debt                                                                                                                                        2,172,606                    1,936,022

    Deferred income taxes                                                                                                                                                              537,304                      489,915
    Other liabilities                                                                                                                                                                   19,173                       82,278

    Commitments and contingencies

    Redeemable noncontrolling interests                                                                                                                                                 98,814                       70,694

    Equity
            Common stock                                                                                                                                                                   637                          636
            Treasury stock, at cost                                                                                                                                                   (720,479)                    (722,653)
            Additional paid-in capital                                                                                                                                               1,037,687                    1,026,157
            Retained earnings                                                                                                                                                        2,087,620                    2,011,801
                                                                                                                                                                                     ---------                    ---------
                         Total Steel Dynamics, Inc. equity                                                                                                                           2,405,465                    2,315,941
            Noncontrolling interests                                                                                                                                                   (27,623)                     (16,041)
                                                                                                                                                                                       -------                      -------
                         Total equity                                                                                                                                                2,377,842                    2,299,900
                                                                                                                                                                                     ---------                    ---------
                         Total liabilities and equity                                                                                                                               $5,815,416                   $5,979,226
                                                                                                                                                                                    ==========                   ==========
                                                                             Steel Dynamics, Inc.
                                                               CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                                                                                (in thousands)

                                                                                                                     Three Months Ended                       Year Ended
                                                                                                                        December 31,                         December 31,
                                                                                                                        ------------                         ------------
                                                                                                                       2012                   2011                     2012              2011
                                                                                                                       ----                   ----                     ----              ----

    Operating activities:
            Net income                                                                                            $55,094                $25,779                 $142,281          $265,692

            Adjustments to reconcile net income to net cash
             provided by
                operating activities:
                    Depreciation and amortization                                                                  55,189                 55,642                  225,216           222,607
                    Equity-based compensation                                                                       2,986                  5,928                   12,449            17,283
                    Deferred income taxes                                                                              64                  5,355                   54,528            34,436
                    Impairment charges                                                                       356                    -                  8,250                     -
                    Changes in certain assets and liabilities:
                            Accounts receivable                                                                    70,373                 93,077                   85,977          (100,602)
                            Inventories                                                                             7,143                (40,736)                  13,845           (85,523)
                            Accounts payable                                                                      (13,578)               (35,999)                 (32,593)           56,551
                            Income taxes receivable/payable                                                         4,727                  3,832                   21,644            26,242
                            Other assets and liabilities                                                           24,564                (18,921)                 (85,293)           49,669
                                                                                                                   ------                -------                  -------            ------
                    Net cash provided by operating                                                                206,918                 93,957                  446,304           486,355
                      activities

    Investing activities:
            Purchase of property, plant and equipment                                                             (64,839)               (75,212)                (223,525)         (167,007)
            Other investing activities                                                                            (32,527)               (70,776)                  31,924           (68,830)
                                                                                                                  -------                -------                   ------           -------
                    Net cash used in investing activities                                                         (97,366)              (145,988)                (191,601)         (235,837)

    Financing activities:
            Issuance of current and long-term debt                                                             -                    -              1,049,969                10,103
            Repayment of current and long-term debt                                                                (6,640)                (5,693)             (1,258,842)            (7,740)
            Debt issuance costs                                                                                       (88)                   (85)                 (13,901)           (6,969)
            Proceeds from exercise of stock options,                                                                1,031                    130                    3,052            13,396
              including related tax effect
            Contributions from noncontrolling investors, net                                                        6,865                 13,615                   37,808            26,822
            Dividends paid                                                                                        (21,923)               (21,869)                 (87,633)          (81,882)
                                                                                                                  -------                -------                  -------           -------
                    Net cash used in financing activities                                                         (20,755)               (13,902)                (269,547)          (46,270)
                                                                                                                  -------                -------                 --------           -------

            Increase (decrease) in cash and equivalents                                                            88,797                (65,933)                 (14,844)          204,248
            Cash and equivalents at beginning of period                                                           287,120                456,694                  390,761           186,513
                                                                                                                  -------                -------                  -------           -------

            Cash and equivalents at end of period                                                                $375,917               $390,761                 $375,917          $390,761

    Supplemental disclosure information:
            Cash paid for interest                                                                                $30,163                $70,720                 $154,136          $171,808

            Cash paid for federal and state income                                                                 $2,944                 $1,549                  $46,920           $75,927
             taxes, net

SOURCE Steel Dynamics, Inc.


Source: PR Newswire