Profile: Steel Dynamics Inc (STLD.OQ)

STLD.OQ on NASDAQ Stock Exchange Global Select Market

21.90USD
21 Oct 2014
Price Change (% chg)

$0.80 (+3.79%)
Prev Close
$21.10
Open
$22.70
Day's High
$22.70
Day's Low
$21.24
Volume
1,935,132
Avg. Vol
1,163,615
52-wk High
$25.51
52-wk Low
$15.80

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Steel Dynamics, Inc., incorporated on June 16, 1994, is a steel producer and metals recycler in the United States. The Company operates in three segments: steel operations, metals recycling and ferrous resources operations, and steel fabrication operations. As of December 31, 2012, the Company estimated annual steelmaking capability of 6.4 million tons and actual recycling volumes. During the year ended December 31, 2012, its metals recycling shipments were 5.6 million gross tons of ferrous materials and 1.1 billion pounds of nonferrous metallics. During 2012, the Company’s steel shipments were 5.8 million tons. The primary sources of its revenues are from the manufacture and sale of steel products, processing and sale of recycled ferrous and nonferrous metals, and, to a lesser degree, fabrication and sale of steel joist and decking products. In September 2014, Steel Dynamics Inc completes acquisition of Severstal Columbus, LLC.

Steel Operations

Steel operations consist of the Company’s five electric-arc furnace mini-mills, producing steel from steel scrap, utilizing continuous casting, automated rolling mills, and various downstream finishing facilities. During 2012, its steel operations accounted for 62% of its consolidated net sales. Its steel operations sell directly to end users and service centers. These products are used in a range of industry sectors, including the automotive, agriculture, energy, construction, commercial, transportation and industrial machinery markets. The Company’s Flat Roll Division sells a range of sheet steel products, such as hot rolled, cold rolled and coated steel products, including a variety of specialty products, such as light gauge hot rolled, galvanized, Galvalume and painted products. During 2012, its sheet operations represented 57% this segment's net sales. It’s Structural and Rail Division sells structural steel beams and pilings and a variety of standard strength and industrial grade rail for the railroad industry.

Its Engineered Bar Products Division primarily sells special bar and merchant bar rounds and round-cornered squares. Its Roanoke Bar Division sells billets and merchant steel products, including angles, plain rounds, flats and channels. Steel of West Virginia primarily sells merchant beams, channels and specialty structural steel sections.

The Company competes with U.S. Steel, AK Steel Corporation, ArcelorMittal, Nucor Corporation, Gallatin Steel Company, North Star Bluescope Steel, Sharon Coatings, Wheeling Nisshin, Severstal, Nucor-Yamato Steel, Gerdau, ArcelorMittal, Evraz Oregon Steel Mills, Inc., Voest-Alpine, Nippon Steel, NKK, Tata, Moravia Steel, Lucchini, SPA, Republic Engineered Products, The Timken Company, Gerdau, Nucor Commercial Metals Company, Mannstaedt, Corus and Hoesch.

Metals Recycling and Ferrous Resources Operations

The Company’s Metals Recycling and Ferrous Resources Operations segment includes its metals recycling operations, liquid pig iron production facility, and Minnesota iron operations. During 2012, its metals recycling and ferrous resources operations accounted for 32% of its consolidated net sales. Its metals recycling operations represent its metals sourcing and processing operations. The Company’s metals recycling operations sell ferrous metals to steel mills and foundries, and nonferrous metals, such as copper, brass, aluminum and stainless steel to ingot manufacturers, copper refineries and mills, smelters, and specialty mills. During 2012, its metals recycling operations represented 94% of segment's net sales. The Company’s metals recycling operations also sell ferrous metals to its own steel mills as a raw material. During 2012, these shipments to its steel mills represented 46% of its metals recycling ferrous shipped tons.

The Company’s ferrous resource operations consist of its two ironmaking initiatives: Iron Dynamics (IDI), a liquid pig iron production facility, and its Minnesota iron operations, an iron nugget production facility and planned operations to supply the nugget facility with its primary raw material, iron concentrate. IDI primarily produces liquid pig iron, which is used as a scrap substitute raw material input at its Flat Roll Division. During 2012, Mesabi Nugget (owned 81% by the Company) produced 169,000 metric tons of iron-nuggets for use by its own steel mills.

The Company competes with The David J. Joseph Company, Sims Metal Management, PSC Metals, Aleris International, Commercial Metals Company and Schnitzer Steel.

Steel Fabrication Operations

The Company’s steel fabrication operations include six New Millennium Building Systems plants, which fabricate steel joists, trusses, girders, and decking used within the non-residential construction industry. During 2012, Steel fabrication operations accounted for 5% of its consolidated net sales. The Company’s individual joist products include bowstring, arched, scissor, double-pitched and single-pitched joists. Its Indiana, Florida and Virginia plants also produce a range of steel roof, form, and composite floor decking.

The Company competes with Vulcraft, a division of Nucor Corporation, Canam Group, Quincy Joist Co., Joist Structural, Valley Joist, Wheeling Corrugating Co., Quincy Joist Co., Consolidated Systems, Inc., and Canam Group.

Company Address

Steel Dynamics Inc

7575 W JEFFERSON BLVD
FORT WAYNE   IN   46804
P: +1260.4593553
F: +1260.9693590

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