Steel Dynamics Announces Quarterly Cash Dividend and Provides Fourth Quarter Earnings Guidance

FORT WAYNE, Ind., Dec. 16, 2010 /PRNewswire-FirstCall/ — Today Steel Dynamics,
Inc. (Nasdaq: STLD) announced that its board of directors has declared a
quarterly cash dividend of $0.075 per common share, payable on or about January
14, 2011, to shareholders of record at the close of business on December 31,
2010.

The company also expects fourth quarter earnings per diluted share, before
certain asset impairment charges related to its fabrication operations, to be in
the range of $0.05 to $0.10, consistent with third quarter 2010 earnings per
diluted share of $0.09. The company is currently evaluating the assets of two
idled fabrication locations for impairment based on current plans for their
future use, as these plans were impacted by the company’s recent purchase of
additional joist locations and equipment. The company currently estimates a
fourth quarter impairment charge of $13 million to $15 million, or approximately
$0.03 to $0.04 per diluted share.

In recent weeks the company’s sheet operations order entry and pricing have
increased significantly, but were negatively impacted early in the quarter by
reduced volumes and pricing. The company also experienced quarterly improvement
in its long product steel operations, notably at its Structural and Rail
Division, as volumes and pricing increased slightly and rail became a larger
component of product mix. In addition, the Engineered Bar Products Division
continues to maintain strong volumes and margins. As a whole, however, the steel
operations financial performance appears to be consistent quarter to quarter.
Comparative third quarter to fourth quarter metals recycling earnings will be
slightly impacted by seasonally reduced volumes, and reduced non ferrous
margins.

Forward-Looking Statements

This press release contains some predictive statements about future events,
including statements related to conditions in the steel and metallic scrap
markets, Steel Dynamics’ revenue, 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. Such predictive statements are not
guarantees of future performance, and actual results could differ materially
from our current expectations.

Factors that could cause such predictive statements to turn out other than as
anticipated or predicted include, among others: the effects of prolonged or
deepening recession on industrial demand; general or specific sector (i.e.,
automotive, consumer appliance or construction) economic conditions affecting
steel consumption; the impact of price competition, whether domestic or the
result of foreign imports; difficulties in integrating acquired businesses;
risks and uncertainties involving new products or new technologies; changes in
the availability or cost of steel scrap or substitute materials; increases in
energy costs; occurrence of unanticipated equipment failures and plant outages;
labor unrest; and the effect of the elements on production or consumption.

More specifically, we refer you to SDI’s 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/A, 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, available publicly on the
SEC Web site, www.sec.gov, and on the Steel Dynamics Web site,
www.steeldynamics.com

Forward-looking or predictive statements we make are based upon information and
assumptions, concerning our businesses and the environments in which they
operate, which we consider reasonable as of the date on which these statements
are made. Due to the foregoing risks and uncertainties however, as well as,
matters beyond our control which can affect forward-looking statements, you are
cautioned not to place undue reliance on these predictive statements, which
speak only as of the date of this press release. We undertake no duty to update
or revise any forward-looking statement, whether as a result of new information,
future events or otherwise.

SOURCE Steel Dynamics, Inc.