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STLD · Steel Dynamics

27 filings

10-K

STLD 10-K Annual Reports

Steel Dynamics - 27 annual reports

Filing record · 2016–202610-K1110-Q348-K207

2025
Steel Dynamics Annual Report, Year Ended Dec 31, 2025
Steel Dynamics, Inc. reported record 2025 steel shipments of 13.7 million tons, up 9%, but net income fell as metal spreads compressed. Net sales rose 4% to $18.18 billion, while operating income dropped 24% to $1.48 billion and net income attributable to Steel Dynamics decreased 23% to $1.19 billion. Diluted EPS was $7.99 versus $9.84 in 2024. Steel operations operating income fell 10% to $1.43 billion and steel fabrication operating income fell 39% to $407.4 million, while metals recycling operating income rose 27% to $97.2 million. The balance sheet expanded materially. Total debt reached $4.2 billion after $980.2 million of net new borrowings tied to senior notes issued in March and November 2025. The long-term debt to capitalization ratio rose to 32.1% from 26.5%. Liquidity totaled $2.2 billion at year-end, including $1.19 billion of revolver availability. Capital expenditures fell to $948.0 million from $1.9 billion, primarily for the aluminum and steel segments. Cash flow from operations was $1.4 billion, and the company returned capital through $291.2 million of dividends paid and $900.9 million of share repurchases. The filing highlights the start-up of the recycled aluminum flat rolled products mill in Columbus, Mississippi, which began shipping in the second half of 2025, and the December 1, 2025 acquisition of the remaining 55% of New Process Steel, L.P. for $229 million in cash. Aluminum operations sales rose 49% to $473.9 million but operating loss widened to $173.0 million. Ernst & Young issued an unqualified opinion on both the financial statements and internal control over financial reporting.
Feb 27, 2026
2024
Steel Dynamics Annual Report, Year Ended Dec 31, 2024
Steel Dynamics, Inc. reported consolidated net sales of $17.54 billion for 2024, down from $18.80 billion in 2023, and operating income of $1.94 billion versus $3.15 billion a year earlier. Net income attributable to Steel Dynamics, Inc. was $1.54 billion, or $9.84 diluted earnings per share, compared with $14.64 in 2023. The filing attributes the earnings decline mainly to metal spread compression in the steel and steel fabrication segments, with steel fabrication operating income falling to $666.98 million from $1.59 billion. Steel operations remained the largest segment at $12.53 billion of net sales and $1.58 billion of operating income. Cash flow from operations was $1.84 billion in 2024, compared with $3.52 billion in 2023, while capital expenditures were $1.87 billion, mainly for the aluminum and steel operations. Cash and equivalents plus short-term investments and unsecured revolver availability totaled $2.17 billion at year-end. Total debt was $3.2 billion, and the company issued $600.0 million of 5.375% senior notes due 2034 in July 2024. The company repurchased $1.2 billion of common stock during 2024 and dividends declared rose to $1.84 per share from $1.70. In February 2025 the board authorized an additional $1.5 billion share repurchase program. The filing highlights the ongoing construction of a 650,000-metric-ton recycled aluminum flat rolled products mill in Columbus, Mississippi, a project the company describes as a $2.7 billion investment, with shipments planned to begin in mid-2025. Management states that its liquidity is sufficient to fund planned 2025 capital requirements. Ernst & Young LLP issued unqualified opinions on the financial statements and on internal control over financial reporting, which management concluded was effective as of December 31, 2024.
Feb 28, 2025
2023
Steel Dynamics Annual Report, Year Ended Dec 31, 2023
Steel Dynamics, Inc. reported a sharp decline in 2023 profitability from record 2022 levels, although volumes were strong. Net sales were $18.80 billion, down 16% from $22.26 billion in 2022. Operating income fell 38% to $3.15 billion from $5.09 billion, and net income attributable to Steel Dynamics, Inc. decreased 37% to $2.45 billion. Diluted earnings per share were $14.64, compared with $20.92 in 2022. Management attributed the decline to metal spread compression across operating segments, as average selling prices fell faster than scrap costs despite record steel operations shipments of 12.8 million tons. Balance sheet and cash flow remained solid. Cash flow from operations was $3.52 billion, and total liquidity was $3.54 billion at December 31, 2023. Total debt was $3.1 billion, and the company had a $1.2 billion unsecured revolver with no borrowings outstanding. Capital expenditures were $1.66 billion, driven largely by the $2.7 billion recycled aluminum flat rolled products mill under construction in Columbus, Mississippi, which is expected to begin operations in 2025. The company repurchased $1.5 billion of common stock in 2023 and declared dividends of $1.70 per share, up from $1.36 in 2022. The company also changed its reportable segments in the fourth quarter of 2023 to steel operations, metals recycling operations, steel fabrication operations, and aluminum operations. Ernst & Young LLP issued an unqualified opinion on the financial statements and an effective opinion on internal control over financial reporting as of December 31, 2023.
Feb 29, 2024
2022
Steel Dynamics Annual Report, Year Ended Dec 31, 2022
Steel Dynamics, Inc. reported record 2022 results, with net sales of $22.26 billion (up from $18.41 billion in 2021), operating income of $5.09 billion, net income of $3.88 billion, and cash flow from operations of $4.46 billion. Diluted earnings per share attributable to Steel Dynamics, Inc. were $20.92, compared with $15.56 in 2021. Steel fabrication operations drove much of the growth, with net sales of $4.26 billion and operating income of $2.42 billion, while steel operations operating income fell 29% to $3.10 billion, reflecting metal spread compression and start-up costs at the Sinton flat roll mill. Metals recycling operating income declined 36% to $117.3 million. The company ended 2022 with total liquidity of $3.45 billion, total debt of $3.1 billion, and a long-term debt to capitalization ratio of 27.7%, down from 32.9% in 2021. It repurchased $1.8 billion of common stock during 2022 and paid cash dividends of $237.2 million, while capital expenditures were $908.9 million. Management also announced a planned $2.5 billion aluminum flat roll mill in Columbus, Mississippi, expected to begin operations in 2025, funded from available cash and operating cash flow. The filing notes risks tied to global steel overcapacity and imports, scrap price volatility, cyclical end markets, and execution on the aluminum project and Sinton ramp-up. The company's senior unsecured revolver ($1.2 billion, undrawn at year-end) carries an interest coverage covenant of at least 2.50:1.00, which was 54.42:1.00 at December 31, 2022.
Feb 28, 2023
2021
Steel Dynamics Annual Report, Year Ended Dec 31, 2021
Steel Dynamics, Inc. (STLD) reported record 2021 results in its 10-K filed February 28, 2022. Net sales were $18.41 billion, up 92% from $9.60 billion in 2020. Operating income was $4.30 billion, compared with $847.1 million in 2020, and net income attributable to Steel Dynamics, Inc. was $3.21 billion, or $15.56 per diluted share, versus $2.59 in 2020. Management attributed the results to strong domestic steel demand, historically low customer inventories and significantly higher steel selling prices, which drove meaningful metal spread expansion across the steel, metals recycling and steel fabrication segments. Steel operations generated $4.36 billion of operating income, the bulk of the company's profit, while metals recycling produced $182.0 million and steel fabrication $365.3 million. Cash flow from operations was $2.20 billion, and the company repurchased $1.1 billion of its common stock, about 8% of outstanding shares, while cash and equivalents ended the year at $1.24 billion. Total debt was steady at $3.1 billion, and the debt-to-capitalization ratio fell to 33.0% from 41.6%. Capital investment totaled $1.0 billion, mainly for the Southwest-Sinton Flat Roll Division, which was nearing completion, with remaining operations expected to start in early 2022. Key risks highlighted in the filing include global steelmaking overcapacity and steel imports, volatility in scrap and energy costs, cyclicality of end markets, COVID-19 effects on demand and supply chains, environmental regulation including greenhouse gas rules, and the start-up risks of the new Sinton mill. The filing also notes that the company's senior unsecured revolver provides $1.2 billion of availability with no borrowings outstanding at year-end.
Feb 28, 2022
2020
Steel Dynamics Annual Report, Year Ended Dec 31, 2020
Steel Dynamics, Inc. (STLD) reported fiscal 2020 results in its 10-K filed March 1, 2021. Net sales were $9.60 billion, down from $10.46 billion in 2019, and operating income was $847.1 million versus $986.9 million. Net income attributable to Steel Dynamics, Inc. was $550.8 million, or $2.59 diluted earnings per share, compared with $3.04 in 2019. The filing states that operations were not closed or idled during 2020 due to COVID-19, and that steel demand rebounded meaningfully in the second half of the year, with flat roll index prices rising over $500 per ton from August through year-end. Steel operations segment operating income declined 14% to $889.5 million as average steel selling prices fell 8%, while metals recycling operating income rose to $33.0 million and steel fabrication reached a record $120.6 million. The company's principal focus is the $1.9 billion Southwest-Sinton Flat Roll Division, an electric arc furnace flat roll mill under construction in Sinton, Texas, with planned start of operations in mid-year 2021. Capital expenditures were $1.2 billion in 2020, of which $927.7 million related to Sinton, and construction commitments totaled $561.1 million at year-end. Liquidity was $2.56 billion, including $1.37 billion of cash and equivalents and $1.19 billion of unsecured revolver availability. Long-term debt, including current maturities, rose to $3.10 billion, and the long-term debt to capitalization ratio was 41.6%. The company repurchased $106.5 million of stock in 2020 and declared dividends of $1.00 per share. The filing describes operating cash flow of $987.0 million for 2020, compared with $1.40 billion in 2019. The company's interest coverage ratio under its credit facility was 10.71:1.00 against a 2.50:1.00 minimum, and it reported being in compliance with covenants at year-end.
Mar 1, 2021
2019
Steel Dynamics Annual Report, Year Ended Dec 31, 2019
Steel Dynamics, Inc. (STLD) reported fiscal 2019 results that declined from the record 2018 year, as customer destocking, falling steel selling prices and weaker scrap prices compressed margins. Net sales were $10.46 billion versus $11.82 billion in 2018, and operating income was $986.9 million versus $1.72 billion. Net income attributable to Steel Dynamics, Inc. was $671.1 million, or $3.04 per diluted share, compared with $5.35 per diluted share in 2018. Management described consolidated net sales of $10.5 billion and cash flow from operations of $1.4 billion as the second-best performance in company history. Segment results were mixed. Steel operations operating income fell to $1.03 billion from $1.84 billion, while steel fabrication operating income rose to a record $119.1 million on record shipments of 644,000 tons. Metals recycling operating income dropped to $16.3 million from $75.9 million as ferrous scrap prices declined. The company acquired 75% of United Steel Supply, LLC in March 2019, and it is building a $1.9 billion electric arc furnace flat roll mill in Sinton, Texas, with planned operations beginning mid-2021. Balance sheet and capital allocation activity was active. Cash and equivalents plus short-term investments totaled $1.64 billion at year-end, and total liquidity was $2.80 billion. Long-term debt rose to $2.73 billion after December 2019 senior note issuances, and the company repurchased 11.3 million shares for $348.6 million. Capital expenditures were $451.9 million, and the company declared dividends of $0.96 per share. The corporate credit rating was upgraded to investment grade in October 2019.
Feb 27, 2020
2018
Steel Dynamics Annual Report, Year Ended Dec 31, 2018
Steel Dynamics, Inc. (STLD) reported record 2018 results, with net sales of $11.82 billion, operating income of $1.72 billion, and net income attributable to Steel Dynamics, Inc. of $1.26 billion, or $5.35 per diluted share. Consolidated operating income rose $655.5 million, or 61%, versus 2017. The company attributed the improvement to steady domestic steel market strength, record steel shipments of 10.6 million tons, and higher metal spreads from increased selling prices. Record cash flow from operations of $1.4 billion was generated, and the company acquired Heartland Flat Roll Division for $396.4 million plus $37.6 million in working capital adjustments. The balance sheet strengthened, with total equity rising to $3.78 billion and the long-term debt-to-capitalization ratio falling to 37.9% from 41.9%. The company repurchased 13.1 million shares for $523.6 million during 2018 and increased its quarterly dividend 21% to $0.1875 per share. At year-end, cash and equivalents were $828.2 million, short-term investments were $228.8 million, and the $1.2 billion revolver had no borrowings outstanding. The company remained in compliance with its financial covenants, with an interest coverage ratio of 16.88:1.00. Management continues to flag risks from global steelmaking overcapacity and imports, with Section 232 tariffs having reduced import volumes but domestic prices still pressured. Raw material cost volatility, particularly scrap, remains a key concern. The filing also describes a planned new electric-arc-furnace flat roll steel mill with about 3.0 million tons of annual capacity in the southwestern United States, and the pending acquisition of a 75% equity interest in United Steel Supply, LLC for $134 million.
Feb 27, 2019
2017
Steel Dynamics Annual Report, Year Ended Dec 31, 2017
Steel Dynamics, Inc. (STLD) reported record 2017 results, with net sales of $9.54 billion (up from $7.78 billion in 2016) and operating income of $1.07 billion compared to $728.0 million in 2016. Net income attributable to Steel Dynamics, Inc. was $812.7 million, or $3.36 per diluted share, compared with $382.1 million, or $1.56 per diluted share, in 2016. Results included a one-time $180.6 million tax benefit, or $0.75 per diluted share, from revaluing deferred tax assets and liabilities under the Tax Cuts and Jobs Act of 2017. Steel operations shipped a record 9.7 million tons, steel fabrication shipped over 627,000 tons, and steel operations operating income rose 19% to a record $1.1 billion. The company generated $739.6 million of operating cash flow in 2017 and ended the year with $1.03 billion of cash and equivalents and $2.2 billion of total liquidity, including $1.2 billion of undrawn Revolver availability. Long-term debt including current maturities was $2.38 billion, and the company issued $350.0 million of 4.125% senior notes due 2025 to refinance its 6.375% notes due 2022. Management repurchased 7.4 million shares for $252.2 million during 2017 and declared dividends of $0.62 per share, up from $0.56 in 2016. Risks highlighted in the filing include global steel overcapacity, imports, volatility in scrap and raw material prices, and cybersecurity threats. The filing states that the company was in compliance with its senior secured credit facility covenants at year-end, with an interest coverage ratio of 10.75:1.00 and a net debt leverage ratio of 1.35:1.00. The Minnesota ironmaking operations remain idle since May 2015, following a $127.3 million non-cash impairment charge recorded in the fourth quarter of 2016.
Feb 27, 2018
2016
Steel Dynamics Annual Report, Year Ended Dec 31, 2016
Steel Dynamics, Inc. (STLD) reported net sales of $7.78 billion for 2016, up from $7.59 billion in 2015, and operating income of $727,966 thousand, compared with an operating loss of $(72,784) thousand in 2015. Net income attributable to Steel Dynamics, Inc. was $382.1 million, or $1.56 per diluted share, versus a net loss of $(130.3) million in 2015. Results include $132.8 million of pretax non-cash asset impairment charges in 2016 (Minnesota ironmaking operations and OmniSource) and $428.5 million in 2015 (OmniSource goodwill and trade name). Excluding these charges, the company cites operating income of $860.8 million for 2016 compared with $355.7 million in 2015. Management attributes the improvement to positive momentum in the sheet steel supply environment, with steel imports declining about 15% in 2016 after trade case duties, steel mill utilization rising to 87% from 79%, and metal spreads improving in the steel operations. The steel operations segment drove the results, with operating income rising to $926.95 million from $403.2 million and shipments up 11%. Metals recycling operations swung to operating income of $20.4 million from a loss of $448.1 million, while steel fabrication operating income fell 22% to $91.0 million on record shipments and compressed metal spreads. Cash flow from operations was $852.8 million, capital expenditures were $198.2 million, and cash and equivalents ended the year at $841.5 million. Total debt declined by $237.8 million to $2.4 billion after a December 2016 refinancing that issued $400.0 million of 5.000% senior notes due 2026 and repaid the remaining $228.1 million senior term loan. The company also acquired Vulcan Threaded Products for $113.0 million on August 1, 2016, and declared dividends of $0.56 per share for 2016. The filing highlights continued exposure to cyclical steel and scrap prices, global steel overcapacity and imports, environmental and climate regulation, and litigation, including antitrust settlements in the Standard Iron Works case totaling roughly $5.6 million paid into escrow in 2017. Liquidity remained strong, with $2.03 billion of total liquidity including $1.19 billion of Revolver availability, and the company was in compliance with its covenants at December 31, 2016.
Feb 28, 2017
2015
Steel Dynamics Annual Report, Year Ended Dec 31, 2015
Steel Dynamics, Inc. (STLD) reported net sales of $7.59 billion in 2015, down from $8.76 billion in 2014, and swung to a net loss attributable to Steel Dynamics, Inc. of $(130.3) million, or $(0.54) per basic share, compared with net income of $157.0 million in 2014. The result was driven mainly by $428.5 million in pretax non-cash asset impairment charges tied to OmniSource, its metals recycling operations, recorded in the fourth quarter. Operating income was a loss of $(72.8) million versus $320.3 million in 2014. Excluding the impairment charges, the company reported consolidated operating income of $355.7 million and net income of $138.3 million, or $0.57 per diluted share. Steel operations were the largest segment at $5.42 billion of net sales, and the segment's operating income fell to $403.2 million from $683.6 million. The filing attributes the weakness to record steel imports, customer destocking, and sharply falling steel and scrap prices, with average steel selling prices down $149 per ton (18%) despite a 14% rise in steel shipments. Steel fabrication operating income rose to $115.9 million from $51.9 million, while the company also idled its Minnesota ironmaking operations in May 2015 after a $260.0 million impairment in 2014. On the balance sheet, cash and equivalents rose to $727.0 million from $361.4 million, and total debt fell to $2.63 billion in total debt outstanding, with $1.2 billion of revolver availability. Operating cash flow was $1.04 billion, and the company declared dividends of $0.55 per share. Management stated that the company was in compliance with its financial covenants at December 31, 2015, with an interest coverage ratio of 4.76:1.00 and a net debt leverage ratio of 2.99:1.00.
Feb 26, 2016
2014-A
Steel Dynamics Annual Report (Amendment), Year Ended Dec 31, 2014
This filing is Amendment No. 1 on Form 10-K/A to Steel Dynamics, Inc.'s Annual Report for the fiscal year ended December 31, 2014, filed June 10, 2015. The amendment was filed solely to correct the reporting period reference in Exhibits 32.1 and 32.2, which had inadvertently referenced the year ended December 31, 2013. The filing states that there are no changes to any financial or other information in the Original Form 10-K filed March 2, 2015, and that it does not update disclosures made in that original report. The registrant is a large accelerated filer incorporated in Indiana and headquartered in Fort Wayne, Indiana, with common stock listed on the Nasdaq Global Select Stock Market. The aggregate market value of voting stock held by non-affiliates was approximately $3,596,627,230 as of June 30, 2014, and 242,037,594 shares of common stock were outstanding as of June 5, 2015. For investors, this amendment carries no new financial results, guidance, or operating disclosures. Its substance is administrative: the certifications now correctly reference fiscal year 2014. The financial content for the year should be taken from the Original Form 10-K.
Jun 10, 2015
2014
Steel Dynamics Annual Report, Year Ended Dec 31, 2014
Steel Dynamics, Inc. (STLD) reported 2014 net sales of $8.76 billion, up 19% from $7.37 billion in 2013, driven by increased shipments in all segments, higher average selling prices in steel and fabrication, and the September 16, 2014 acquisition of Severstal Columbus, LLC for a purchase price of $1.625 billion. Columbus contributed $638.3 million of revenue from its acquisition date through year-end. Net income attributable to Steel Dynamics, Inc. fell to $157.0 million, or $0.67 per diluted share, from $189.3 million, or $0.83 per diluted share, in 2013, because of a $260.0 million non-cash impairment charge on the Minnesota ironmaking operations. Excluding that charge, net income rose to $289.6 million, or $1.22 per diluted share, and operating income rose to $580.3 million. The balance sheet grew substantially. Total assets reached $7.31 billion and total long-term debt, including current maturities, reached $3.02 billion, up from $2.11 billion, following the issuance of $1.2 billion in senior notes. The company stated it was in compliance with its financial covenants at December 31, 2014, with an interest coverage ratio of 6.05:1.00 against a minimum of 2.50:1.00. Cash flow from operations was $617.6 million, and capital expenditures were $111.8 million. The company declared a quarterly dividend of $0.115 per share, up 5%. The filing also flags ongoing risks. The Minnesota ironmaking operations will be warm-idled for six to eight weeks beginning in mid-February 2015. Steel imports reached record levels in 2014, and the company is party to class action antitrust litigation in Chicago that it describes as not presently expected to have a material impact. The company also announced a call of its $350.0 million 7 5/8% senior notes due 2020, with an estimated $16.7 million of related expenses in the first quarter of 2015.
Mar 2, 2015
2013
Steel Dynamics Annual Report, Year Ended Dec 31, 2013
Steel Dynamics, Inc. (STLD) reported net sales of $7.37 billion in 2013, up from $7.29 billion in 2012, while operating income was $386.5 million compared with $391.2 million a year earlier. Net income attributable to Steel Dynamics, Inc. was $189.3 million, or $0.83 per diluted share, versus $163.6 million, or $0.73 per diluted share, in 2012. The company attributed the earnings improvement largely to interest cost savings of $30.9 million and lower refinancing costs of $37.7 million, offsetting compressed metal margins in the steel and metals recycling businesses. Steel operations reached record shipments of 6.1 million tons, but average steel prices per ton declined $41. The metals recycling and ferrous resources segment swung to an operating loss of $52.5 million, driven in part by losses from the Minnesota iron operations of approximately $42 million, or $0.18 per diluted share. Management said it expects to assess toward the end of the first quarter of 2014 whether further process improvements at the Mesabi Nugget facility are justifiable. Steel fabrication operating income rose to $7.0 million on a 24% increase in selling volumes. Balance sheet and cash flow data show cash and equivalents of $395.2 million, total long-term debt of $2.11 billion, and cash flow from operations of $312.2 million, with capital expenditures of $186.8 million. The company's long-term debt to capitalization ratio was 44.7%, and it was in compliance with its credit facility covenants. A class action antitrust complaint involving steel manufacturers remains pending, with a class certification hearing scheduled for March 5-7, 2014, and the company has not determined a dollar estimate of exposure.
Mar 3, 2014
2012
Steel Dynamics Annual Report, Year Ended Dec 31, 2012
Steel Dynamics, Inc. (STLD) reported 2012 net sales of $7.29 billion, down from $8.00 billion in 2011, and operating income of $391.2 million versus $584.8 million a year earlier. Net income attributable to Steel Dynamics, Inc. was $163.6 million, or $0.73 per diluted share, compared with $278.1 million, or $1.22 per diluted share, in 2011. The steel operations segment drove most of the decline, with operating income falling $162.5 million to $495.6 million as average selling prices per ton shipped dropped $64 while scrap costs fell only $32 per ton. The metals recycling and ferrous resources segment swung to an operating loss of $36.5 million from income of $26.6 million in 2011. The company refinanced a substantial portion of its debt during 2012, issuing $400.0 million of 6 1/8% Senior Notes due 2019 and $350.0 million of 6 3/8% Senior Notes due 2022, and adding a $275.0 million term loan. Total debt was reduced by $177.9 million to $2.2 billion, and the refinancing generated $40.3 million of related expenses. Cash and equivalents ended the year at $375.9 million, with $1.1 billion of revolver availability, and operating cash flow was $445.7 million. Capital expenditures were $223.5 million, and the company's 2013 capital plan calls for $200.0 to $225.0 million. The filing also highlights the ramp-up of the Mesabi Nugget iron-nugget facility and the Mining Resources iron tailings operation, which together reduced net income by approximately $41.5 million in 2012, and management expects lower iron concentrate costs to benefit results beginning in the second quarter of 2013. The company remains a defendant, with other steel producers, in a class action antitrust suit in Chicago, and management stated it does not presently believe the outcome would have a material impact on the company.
Feb 27, 2013
2011
Steel Dynamics Annual Report, Year Ended Dec 31, 2011
Steel Dynamics, Inc. (STLD) reported a strong 2011 in its Form 10-K filed February 27, 2012. Net sales rose to $7,997,500 thousand ($8.0 billion) from $6,300,887 thousand in 2010, and operating income reached $584,820 thousand versus $364,753 thousand. Net income attributable to Steel Dynamics was $278,120 thousand, or $1.22 per diluted share, compared with $140.7 million, or $0.64 per diluted share, in 2010. Management attributed the improvement to higher steel shipments and pricing across segments, with the steel operations segment's operating income rising to $658.1 million. Steel operations shipping volumes improved 9% and overall steel pricing increased 16% on a per-ton basis. The balance sheet and liquidity position improved during 2011. Total debt was $2.4 billion at year-end, the long-term debt to capitalization ratio fell to 50.1% from 52.8%, and liquidity rose to almost $1.6 billion. In September 2011 the company entered into a new five-year senior secured revolving credit facility providing up to $1.1 billion of borrowing. In January 2012 it tendered for $279.7 million of its $700.0 million 7 3/8% senior notes due November 2012 and funded the tender with a $275.0 million term loan maturing in 2016. The company reported covenant compliance at December 31, 2011, with an interest coverage ratio of 4.92:1.00 and a net debt leverage ratio of 2.36:1.00. The filing also lays out risks and outlook. Management cites non-residential construction demand at historically low levels and ongoing margin compression in metals recycling, where competition for feedstock remained strong. Losses from the Minnesota iron operations (Mesabi Nugget) reduced 2011 net income by approximately $34.0 million. For 2012, management expects continued slow but steady U.S. economic growth and plans capital expenditures of between $225.0 and $250.0 million. The company also disclosed that it is a defendant, with eight other steel manufacturers, in a class action antitrust complaint, and it stated that it could not presently determine the outcome and did not believe there was a reasonably possible material impact.
Feb 27, 2012
2010
Steel Dynamics Annual Report, Year Ended Dec 31, 2010
Steel Dynamics, Inc. (STLD) reported a sharp recovery in 2010 from the 2009 downturn. Net sales were $6.30 billion in 2010, up from $3.96 billion in 2009 and $8.08 billion in 2008. Operating income rose to $364.8 million from $119.5 million, and net income attributable to Steel Dynamics was $140.7 million, or $0.64 per diluted share, versus a net loss of $8.2 million in 2009. Steel operations drove much of the improvement, with segment operating income of $439.8 million, while metals recycling and ferrous resources operating income reached $19.7 million. Management expects slow but steady U.S. economic growth in 2011, expects steel consumption to grow in several end markets, and plans capital investments of less than $200 million. The balance sheet and financing position remained substantial. Total debt rose to $2.39 billion at December 31, 2010, following the March 2010 issuance of $350 million of 7 5/8% senior notes due 2020. Cash and equivalents increased to $186.5 million, and liquidity increased $403 million to $1.1 billion. The company stated it was in compliance with its financial covenants, with an interest coverage ratio of 3.79 to 1.00 and a total debt ratio of 3.74 to 1.00 at year-end. Mesabi Nugget, the company's iron-nugget facility, produced 75,000 metric tons in 2010 and generated start-up operating losses that reduced consolidated pretax earnings by $42 million, with production expected to ramp toward a 500,000 metric ton annual capacity. Key risks disclosed include the cyclical nature of steel and scrap markets, import pressure, Chinese overcapacity, raw material and energy cost volatility, and environmental regulation including potential greenhouse gas rules. The company also disclosed ongoing antitrust class actions filed in 2008 alleging price-fixing, and a criminal indictment of its subsidiary OmniSource Corporation in October 2010, which the company is contesting. The company did not state a dollar estimate of exposure for these matters.
Feb 23, 2011
2009-A
Steel Dynamics Annual Report (Amendment), Year Ended Dec 31, 2009
Steel Dynamics, Inc. (STLD) reported a challenging 2009. Net sales fell to $3.96 billion from $8.08 billion in 2008, and operating income dropped to $119.5 million from $846.4 million. The company posted a net loss attributable to Steel Dynamics, Inc. of $8.2 million, or $0.04 per diluted share, compared with net income of $463.4 million, or $2.38 per diluted share, in 2008. The first quarter of 2009 was the weakest, with a non-cash inventory valuation adjustment of $83.3 million, and gross margins improved in each later quarter. Management describes the company as well-positioned to weather the downturn, with a focus on controlling costs, improving leverage and maintaining liquidity. The company strengthened its capital structure during 2009. In June it raised net proceeds of approximately $678.8 million from a common stock offering and 5.125% convertible senior notes, using them to prepay its $552.0 million Term A loan. Total debt fell by $427.6 million to $2.2 billion, and the total debt to capitalization ratio improved from 62% to 53%. Cash dividends paid were $68.7 million, and the quarterly dividend was reduced to $0.075 per share from $0.10. The company's first lien leverage was 0.49x at year end, and it reported compliance with its amended financial covenants. Looking ahead to 2010, management remains cautious on demand but notes improving order logs in sheet, special bar quality and ferrous and nonferrous materials. It expects higher utilization in steel and metals recycling, does not anticipate material improvement in fabrication or structural steel, and plans capital investments of less than $150 million. Mesabi Nugget, the iron-nugget facility, began initial production in January 2010 and is expected to be a drag on segment results in 2010 during its start-up phase. This amended filing is identical to the original February 22, 2010 10-K except for the renumbering of Items 5 through 15.
Mar 5, 2010
2009
Steel Dynamics Annual Report, Year Ended Dec 31, 2009
Steel Dynamics, Inc. (STLD) reported a challenging 2009 in its Form 10-K filed February 22, 2010. Net sales fell to $3.96 billion from $8.08 billion in 2008, and the company posted a net loss attributable to Steel Dynamics, Inc. of $8.2 million, or $0.04 per diluted share, compared with net income of $463.4 million, or $2.38 per diluted share, in 2008. Operating income dropped to $119.5 million from $846.4 million. The company cited a sharp decline in non-residential construction, residential construction and automobile manufacturing activity, which drove lower volumes and prices. Steel shipments fell 28% and the company recorded an $83.3 million non-cash inventory valuation adjustment in the first quarter of 2009. The filing emphasizes balance sheet repair. Total debt decreased $427.6 million to $2.2 billion, largely because a June 2009 common stock offering and $287.5 million of 5.125% convertible senior notes raised net proceeds of about $678.8 million, which were used to prepay the $552.0 million Term A loan. The total long-term debt to capitalization ratio fell to 53% from 62%, and the first lien leverage ratio was .49x at year-end. Capital investments were $330.1 million in 2009, including $223.8 million for the Mesabi Nugget iron-nugget facility, which began producing nuggets in January 2010. Management plans capital investments of less than $150 million in 2010 and expects some improvement in sheet and special bar-quality order logs, but does not anticipate material improvement in fabrication or structural steel. Key risks disclosed include the cyclical steel and scrap markets, steel import pressure, Chinese overcapacity, covenant restrictions under the senior secured credit agreement, and start-up risk at Mesabi Nugget. The company also faces litigation, including a Prime Eagle lawsuit seeking more than $1.1 billion (dismissed by the district court and on appeal), a class action antitrust suit against nine steel producers, and a securities suit that was dismissed in December 2009 with no appeal filed.
Feb 22, 2010
2008
Steel Dynamics Annual Report, Year Ended Dec 31, 2008
Steel Dynamics, Inc. (STLD) reported 2008 net sales of $8.08 billion, up from $4.38 billion in 2007, and net income of $463.4 million, or $2.38 per diluted share, compared with $394.6 million, or $2.01 per diluted share, in 2007. Growth was driven largely by the OmniSource (acquired October 2007) and Recycle South (acquired June 2008) metals recycling acquisitions, which made the metals recycling and ferrous resources segment 31% of consolidated net sales in 2008 versus 9% in 2007. Gross margin fell to 15% from 21%, reflecting lower-margin recycling operations and The Techs galvanizing business, while total debt rose to $2.65 billion, a 62% debt-to-capitalization ratio. Management said it anticipates a substantial decrease in steel operations' average pricing in 2009 due to a weak economy and falling demand, and that steel scrap costs should remain relatively low. The company also faces significant litigation exposure. A $1.1 billion damages lawsuit by Prime Eagle Group Limited was dismissed with prejudice on February 23, 2009, while a class action antitrust suit under the Sherman Act, filed by Standard Iron Works and others, remains pending with a joint motion to dismiss filed by the defendants. Management reported that internal control over financial reporting was effective as of December 31, 2008, excluding Recycle South, and that the company was in compliance with its senior secured credit facility covenants. The company is investing in growth, with capital expenditures of $412.5 million in 2008 and approximately $270 million planned for 2009. Key projects include a second caster at the Structural and Rail Division and the Mesabi Nugget iron-nugget facility, which is expected to commence production in the second half of 2009. Management believes cash flow from operations and available borrowings will be adequate for the next two years to meet debt service, working capital and capital expenditure needs.
Feb 27, 2009
2007
Steel Dynamics Annual Report, Year Ended Dec 31, 2007
Steel Dynamics, Inc. (NASDAQ: STLD) reported net sales of $4.38 billion for 2007, up from $3.24 billion in 2006, with net income of $394.6 million, or $4.02 per diluted share, compared with $396.7 million, or $3.77 per diluted share, in 2006. Shipments rose to 6.2 million tons, driven by increased volumes at existing steelmaking operations and the acquisitions of The Techs (July 2007) and OmniSource Corporation (October 2007). Gross margin fell to 21% from 26%, which the company attributed primarily to weaker flat roll steel markets and the lower-margin scrap and galvanizing businesses it acquired. The balance sheet expanded considerably. Total assets were $4.52 billion at December 31, 2007, versus $2.25 billion a year earlier, and total debt rose to $2.03 billion, giving a total debt to capitalization ratio of 57% compared with 26% in 2006. The increase reflects the $700 million 7 3/8% senior notes due 2012 and the $500 million 6 3/4% senior notes due 2015, together with a $550 million Term A Loan and borrowings under a $750 million senior secured revolver. Operating cash flow was $428.2 million, and capital expenditures were $395.2 million. The company repurchased 12.6 million shares for $533.7 million in 2007 and declared dividends of $.60 per share. The filing also discloses a lawsuit served on February 1, 2008 by Prime Eagle Group Limited, which alleges damages in excess of $1.1 billion related to a 1998 Thai steel mill start-up. The company believes the claims are without merit and has not accrued a liability. Management expects gross interest expense to rise in 2008 because of the acquisition financing, and it anticipates an increase in average steel pricing compared with the fourth quarter of 2007.
Feb 27, 2008
2006
Steel Dynamics Annual Report, Year Ended Dec 31, 2006
Steel Dynamics, Inc. reported fiscal 2006 net sales of $3.24 billion, up from $2.18 billion in 2005, and net income of $396.7 million, or $3.77 per diluted share, compared with $221.8 million, or $2.17 per diluted share, in 2005. Consolidated shipments rose to 4.7 million tons from 3.6 million tons, driven by increased shipments at each steelmaking operation and the inclusion of Roanoke Electric operations from the April 11, 2006 merger. Gross margin was 26% in 2006 versus 22% in 2005, as the average consolidated selling price per ton shipped increased $83 while metallic raw material cost per net ton rose only $6. The company also cited a 2006 inventory build and softer flat-rolled pricing in the third quarter, with management expecting a decrease in first-quarter 2007 average pricing. The Roanoke Electric acquisition added a third reporting segment, steel fabrication, and diversified the product mix into bar products and joists. Fabrication operations accounted for 8% of 2006 net sales, and Steel Operations for 89%. Total debt was $438.9 million at December 31, 2006, with a long-term debt to capitalization ratio of 26% versus 33% a year earlier. Cash and equivalents declined to $29.4 million, and the company repurchased 9.4 million shares for $247.4 million during 2006. Management plans approximately $400 million of 2007 capital spending, including about $200 million for a second structural rolling mill, and expects to continue quarterly dividends at similar levels. The filing states that the company is currently not party to any pending or threatened proceeding that management believes would have a material adverse effect. Key risks highlighted include steel import pressure, Chinese overcapacity, raw material and energy cost increases, cyclicality tied to the automotive industry, and restrictive debt covenants.
Feb 26, 2007
2005
Steel Dynamics Annual Report, Year Ended Dec 31, 2005
Steel Dynamics, Inc. reported net income of $221.8 million, or $4.35 per diluted share, for 2005, compared with $295.3 million, or $5.27 per diluted share, in 2004. Net sales were $2.18 billion in 2005, essentially flat from $2.14 billion in 2004, while consolidated shipments rose 5% to 3.6 million tons. Gross profit fell to $485.1 million from $603.5 million, and the company stated that its gross margin percentage compressed 6%, reflecting lower product pricing and higher manufacturing and energy costs. The average consolidated selling price per ton shipped decreased $17 versus 2004. The company operates three steel mini-mills (Flat Roll, Structural and Rail, and Bar Products) with an estimated combined capacity of 4.2 million tons, plus New Millennium Building Systems and the Iron Dynamics scrap substitute facility. Operating cash flow was $310.8 million in 2005, capital expenditures were $63.4 million, and the company repurchased 5.9 million shares for $186.8 million during the year. Total debt was $440.6 million at December 31, 2005, the long-term debt to capitalization ratio was 33%, and a new $350 million senior secured revolver had no outstanding borrowings. The company also announced a definitive agreement to acquire Roanoke Electric Steel Corporation in a stock-and-cash merger, subject to Roanoke stockholder approval scheduled for April 11, 2006. The board declared cash dividends of $.40 per share in 2005, and the company announced a regular 10-cent dividend plus a special 10-cent dividend for the first quarter of 2006. Ernst & Young LLP issued an unqualified opinion on the financial statements and on the effectiveness of internal control over financial reporting as of December 31, 2005.
Mar 9, 2006
2003-A
Steel Dynamics Annual Report (Amendment), Year Ended Dec 31, 2003
Steel Dynamics, Inc. (STLD) reported results for fiscal 2003, when it operated three electric arc furnace mini-mills: a flat-roll mill in Butler, Indiana (the core business, 76.8% of net sales), a structural and rail mill in Columbia City, Indiana, and a bar products mill in Pittsboro, Indiana. Net sales rose to $987.2 million from $864.5 million, an increase of $122.8 million or 14%, driven mainly by the first full year of the Structural and Rail Division. Consolidated shipments increased 18% to 2.8 million tons. Net income fell to $47.1 million, or $.98 per diluted share, from $77.9 million, or $1.64 per diluted share, in 2002. The filing attributes the decline to sharply higher metallic raw material costs, mainly steel scrap. Cost of goods sold rose to approximately 84% of net sales from 74%, and gross profit fell to $160.0 million from $225.6 million. The company's strategy centers on value-added products, including the new $25 million on-site coating line at Butler, the Jeffersonville galvanizing facility, and the Pittsboro bar mill, which is being upgraded at a planned cost of $75 to $80 million. The Iron Dynamics scrap-substitute ironmaking project, in which the company had a $185 million equity investment at year-end, restarted its front-end process in late 2003, producing 15,100 tonnes of hot briquetted iron in December. Management said it expected to restart the smelting end in the first quarter or early second quarter of 2004. Capital expenditures were $137.1 million in 2003. Liquidity improved over the year. Cash and equivalents reached $65.4 million, up from $24.2 million, after a $100.0 million add-on issuance of 9½% senior unsecured notes due 2009 that produced net proceeds of $108.8 million. Total long-term debt including current maturities was $607.6 million at year-end. The company recorded a $14.0 million gain from extinguishing the remaining Iron Dynamics contingent liability. Management noted that scrap costs had reached historic highs and that it planned to pass some of these costs to customers through a scrap surcharge beginning in 2004.
Mar 9, 2005
2004
Steel Dynamics Annual Report, Year Ended Dec 31, 2004
Steel Dynamics, Inc. (STLD) reported a sharply stronger 2004 as steel prices surged. Net sales rose to $2.14 billion from $987.2 million in 2003, and net income reached $295.3 million, or $5.27 per diluted share, compared with $47.1 million, or $.91 per diluted share, a year earlier. Management attributed the improvement to increased selling values and shipping volumes. Consolidated shipments grew to 3.4 million tons, and the average selling price rose to $625 per ton from $350 in 2003. Metallic raw materials, mainly steel scrap, became the largest cost item and reached 65% of cost of goods sold in 2004, which prompted a scrap-indexed surcharge to customers. Scrap prices rose sharply, with No. 1 factory bundles at $376 per ton in December 2004 versus $186 in December 2003, and management described these costs as unsustainable at current levels. The balance sheet strengthened considerably. Total debt fell to $448.4 million from $607.6 million, stockholders' equity rose to $847.1 million, and the long-term debt-to-capitalization ratio dropped to 34% from 50%. The company refinanced its senior secured facilities into a $230 million revolving credit facility that was undrawn at year-end. It also began paying quarterly cash dividends, declaring $.25 per share for 2004, and repurchased 1.6 million shares in the fourth quarter at an average of $35, with a further 1.0 million shares bought in January 2005. The filing also flags execution risks. The Iron Dynamics scrap-substitute facility has consumed significant capital, with an investment of $185 million, and the company plans a $60 to $80 million Mesabi Nugget joint venture. The Structural and Rail Division's rail production was not yet at Class I quality, with that quality expected in the second quarter of 2005. Heidtman Steel Products, an affiliate, accounted for about 12% of 2004 net sales, and the company has a 4-year $230 million revolver. Capital expenditures for 2005 are projected at about $160 million.
Mar 4, 2005
2003
Steel Dynamics Annual Report, Year Ended Dec 31, 2003
Steel Dynamics, Inc. reported 2003 net sales of $987.2 million, up from $864.5 million in 2002, on shipments of 2.8 million tons. Net income fell to $47.1 million, or $.98 per diluted share, from $77.9 million, or $1.64 per diluted share, in 2002. The company attributes the earnings decline primarily to sharply higher metallic raw material costs: steel scrap and scrap substitutes. Metallic raw materials represented 53% of cost of goods sold in 2003, up from 48% in 2002, and the company's average metallic cost rose $29 per net ton while its average selling price fell $12 per ton to $350. Gross profit declined to $160.0 million from $225.6 million, and operating income to $96.6 million from $158.4 million. Management said it expects to pass some of these costs through via a scrap surcharge tied to an indexed scrap price and expects a higher gross margin in the first quarter of 2004. Growth investments were significant in 2003. The Structural and Rail Division was in its first full year of operations, the Bar Products (Pittsboro) mill began limited production in December 2003, and a $25 million paint line and a galvanizing facility in Jeffersonville, Indiana came online. Capital expenditures totaled $137.1 million. Long-term debt including current maturities rose to $607.6 million, and the company issued an additional $100 million of 9 1/2% senior notes in November 2003. Cash and equivalents increased to $65.4 million. Iron Dynamics, the company's scrap substitute facility, was restarted in late 2003 and had $185 million of equity investment; the company stated that its undiscounted cash flow estimate exceeded the carrying amount of $125 million of related assets by approximately $54 million, so no impairment was recorded. The filing highlights concentration and risk: Heidtman Steel Products accounted for 13% of 2003 net sales, the top ten Butler customers for approximately 42%, and OmniSource supplied approximately 89% of scrap purchases, with that supply agreement terminated effective March 31, 2004 in favor of multiple sources. The company also noted that the Section 201 steel tariffs were rescinded in December 2003 and that scrap prices had risen to $310 per ton in early March 2004.
Mar 12, 2004
2002
Steel Dynamics Annual Report, Year Ended Dec 31, 2002
Steel Dynamics, Inc. (NASDAQ: STLD) reported record 2002 results in its 10-K filed March 28, 2003. Net sales rose to $864.5 million from $607.0 million in 2001, and net income was $77.9 million, or $1.64 per diluted share, compared with $3.1 million in 2001. Operating income was $163.9 million, up from $25.9 million, and the Flat Roll Division at Butler, Indiana produced a record 2.4 million tons against 2.2 million tons of rated capacity. Shipments rose to 2,390,342 net tons from 1,963,602, and operating profit per net ton shipped was $74, compared with $23 in 2001. Management cautioned that flat-rolled steel prices softened in the first quarter of 2003 because of weaker demand and returning domestic tonnage, while scrap and metallic raw material costs rose, tightening first-quarter margins. The company has significant new capacity coming on line: the Columbia City structural and rail mill, the Butler coil coating facility, the Jeffersonville galvanizing facility acquired in March 2003 for $17.5 million plus up to $1.5 million in earn-out payments, and the Pittsboro bar mill acquired in 2002 for $45 million, with production expected in the first quarter of 2004. Iron Dynamics, the scrap substitute facility, is expected to restart in the second half of 2003 after a $14 million investment. Leverage remains substantial. Total debt was $555.5 million at year-end 2002, including $200.0 million of 9 1/2% senior notes due 2009 and $100.0 million of 4% convertible subordinated notes due 2012, which were later increased to $115.0 million. Cash flow from operations was $115.0 million, and cash and equivalents fell to $24.2 million. The company paid no cash dividends and does not expect to pay any in the foreseeable future.
Mar 28, 2003