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Steel Dynamics, Inc. revised its outlook for the second quarter.

The company expects second quarter results to moderately decrease based on continued soft demand coupled with the unforeseen significant drop in scrap prices for delivery in May and June. These factors have caused a drop in contract and spot pricing for finished steel products in June.

The company now expects second quarter earnings per diluted share to be in the range of $1.10 to $1.15, similar to first quarter results. Early estimates for the second quarter had been in the range of $1.35 to $1.40 per diluted share. The lower expectations are somewhat driven by FIFO scrap considerations which largely flow through into the third quarter.

Although demand for flat-rolled steel products remains soft, demand has begun to pick up in the structural and SBQ markets. The company continues to believe that demand for flat-rolled products will improve in the third quarter. The recent significant decline in scrap prices will favorably impact the company's production costs in the third quarter when lower cost scrap inventories are consumed, thereby potentially improving profit margins.

SDI continues to see 2005 as a very good year and expects its earnings to rival those of 2004. The company currently expects 2005 steel shipments to grow 5 to 10% over 2004, primarily due to increased shipments by newer operations.

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