Steel Dynamics Announces Second Quarter Cash Dividend and Provides Second Quarter Earnings Guidance

FORT WAYNE, Ind., June 16, 2011 /PRNewswire/ — Steel Dynamics, Inc. (NASDAQ-GS:
STLD) today announced that its board of directors has declared a quarterly cash
dividend of $0.10 per common share. The dividend is payable on or about July 14,
2011, to shareholders of record at the close of business on June 30, 2011.

The company also expects second quarter earnings to be in the range of $0.35 to
$0.40 per diluted share, somewhat lower than the first quarter 2011 reported
results of $0.46, but higher than earnings of $0.22 per diluted share achieved
in the second quarter of 2010. On a comparative basis, unrealized hedging gains
at the company’s metals recycling operations were $9.5 million in the first
quarter 2011, as compared to an estimated second quarter unrealized hedging loss
of approximately $3 million, resulting in a non-cash fluctuation in the
company’s quarter over quarter pretax earnings of $12.5 million, an estimated
impact of approximately $0.03 per diluted share.

During the quarter, the company has been experiencing reduced metal margins in
its metals recycling operations, as the cost of acquiring unprocessed scrap
material more than outpaced any price increases, resulting in an estimated 15%
quarterly reduction in ferrous margins and an estimated 25% reduction in
nonferrous margins (excluding the impact from unrealized hedging adjustments),
driven by the copper and stainless steel markets. The impact of Mesabi Nugget on
the company’s results is estimated to be comparable to that experienced in the
first quarter 2011, due to the previously discussed planned May maintenance
outage.

In addition, during the second quarter the company experienced periods of weaker
than expected market dynamics for both its sheet and structural products. April
incoming orders for flat-rolled steel were about 25% less than the monthly
average achieved in the first quarter; however, orders since the beginning of
May have returned to levels consistent with those achieved earlier in the year
and currently the company expects this trend to continue. Unexpectedly, incoming
orders for structural steel weakened in the quarter, as the residential and
non-residential construction markets remain a challenge.

Despite these volume and pricing issues, the company’s steel operations’
operating results are expected to be further improved from those experienced in
the first quarter 2011.

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, 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.