Products and Markets - Steel Dynamics, Inc.
Products and Markets - Steel Dynamics, Inc.
Products and Markets - Steel Dynamics, Inc.
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<strong>Products</strong> <strong>and</strong> <strong>Markets</strong>steel operations2008 shipments: 5.6 million tonsSTEEL SHIPMENTSBY TYPE/OPERATING DIVISIONFLAT ROLL SHIPMENTSBY PRODUCT TYPEPICKLEDCOLD ROLLEDFLAT-ROLLEDSTEEL 56%The Techs 15%20% STRUCTURAL STEELStructural <strong>and</strong> Rail Division10%SBQ/MBQ STEELEngineered Bar<strong>Products</strong> DivisionCold-rolledGalvanized30%5%6%PAINTED8%GALVALUME3%Flat Roll Division 41%5%9%MERCHANT BARSRoanoke Bar DivisionSPECIALTY STEEL<strong>Steel</strong> of West VirginiaGALVANIZED45%15%Hot-rolledGalvanized33% HOT ROLLSTEEL SHIPMENTSBY DISTRIBUTION CHANNEL4%STEEL FABRICATORSSTEEL SHIPMENTSBY END MARKET*Other manufacturing 19%CONSTRUCTION 40%15% Metal buildingsSERVICE CENTERSAND DISTRIBUTORS61%35%DIRECT SALES(OEMS)Appliances <strong>and</strong> HVAC 2%Other transportation 2%Agriculture 3%Heavy equipment 3%Mining 5%Energy 9%Heavyconstruction13%Light commercial<strong>and</strong> residential12%17%AUTOMOTIVE* End-market percentages shown are best estimates. Construction <strong>and</strong> automotive-market estimates are believed to be the most accurate because oursales to these markets are more direct <strong>and</strong> transparent. Because of the high percentage of our steel shipments going through distribution, <strong>and</strong> becausedistributors generally do not report details of their customer sales to us, the estimates for the other markets are less certain, <strong>and</strong> include direct sales,plus estimates by our marketing departments of distribution sales into each market.ANNUAL REPORT 2008A1
PRODUCTS AND MARKETSThis section shows products now offered by <strong>Steel</strong> <strong>Dynamics</strong>in three categories: steel, fabricated steel, <strong>and</strong> recycled metals.These products are used in a wide array of applications, someof them shown in photos across the top of these pages.steel operationsFLAT ROLLPRODUCTS2008mixButlerJeffersonvilleTheTechsABEA Hot b<strong>and</strong> 33% •B Pickled 5% •C Cold-rolled 6% •D Hot-rolled galvanized 15% • •E Cold-rolled galvanized 30% • • •CDEF Galvalume® 3% •G Painted 8% • •FGEND MARKETS Flat-rolled steel markets include numerous constructionapplications, particularly siding, roofing, <strong>and</strong> decking in metal buildings,light commercial <strong>and</strong> residential construction, galvanized ductwork, framing,<strong>and</strong> garage doors; automotive parts; appliances; heating, air conditioning,<strong>and</strong> ventilation equipment; agriculture equipment <strong>and</strong> grain bins; weldedpipe <strong>and</strong> tubing used in utility systems <strong>and</strong> energy applications; lightingfixtures; architectural panels; office furniture; <strong>and</strong> culverts <strong>and</strong> guardrails.Galvalume® is a registered trademark of BIEC International, <strong>Inc</strong>.Engineered Bar productsPRODUCTSA Finished barB RoundsC Round-cornered squaresDETAILWe produce engineered Special BarQuality (SBQ) steel in round barsranging from 1.5-inch to 9-inchdiameter <strong>and</strong> round-cornered SBQsquares in sizes from 2 to 8 inches.We provide such bar-finishing servicesas heat-treating, turning, straightening,polishing, chamfering, <strong>and</strong> precisionsaw-cutting, as well as non-destructivetesting services. We also occasionallyproduce No. 5 to No. 11 rebar.ABCEND MARKETS Round bars are most frequently used to make parts—suchas gears, shafts, axles, <strong>and</strong> flywheels —for rotating machinery applications.Round-cornered squares are mainly used in forging steel parts. Typically,our high-strength carbon <strong>and</strong> alloy-steel bars are custom-formulated forspecific applications in heavy-construction equipment, automobiles <strong>and</strong>trucks, agricultural equipment, mining, <strong>and</strong> marine drive systems. We alsoengineer <strong>and</strong> produce round bars for the manufacture of seamless pipe<strong>and</strong> tubing used in oil drilling, military, <strong>and</strong> other applications.A2STEEL DYNAMICS, INC.
structural <strong>and</strong> railPRODUCTSA Wide-flange beamsWeb height from 4 to 36 inchesB H-pilingC RailD Structural shapes(channels shown here)DETAILWe produce wide-flange beams in awide range of web heights <strong>and</strong> weights,cut to st<strong>and</strong>ard or custom lengths upto 120 feet; H-piling, which is driveninto the ground to support structures,in various sizes up to 120 feet; <strong>and</strong>rail in various sizes up to 240 feetin length <strong>and</strong> welded rail up to1,600 feet in length.AEND MARKETS Wide-flange beams <strong>and</strong> structural shapes are used primarilyin construction: commercial <strong>and</strong> industrial buildings, bridges, skyscrapers,hospitals, airport terminals, stadiums, parking garages, office buildings, <strong>and</strong>distribution centers. They are used in energy projects such as refineries, bio-diesel<strong>and</strong> ethanol plants, <strong>and</strong> other processing facilities; <strong>and</strong> in the manufacture oftruck, trailer, <strong>and</strong> RV frames. H-piling supports such structures as bridges, roads,<strong>and</strong> oil <strong>and</strong> natural-gas pipelines. Rail is used in railway track by Class 1 railroads,short lines, commuter lines, <strong>and</strong> industrial plants.B C DMERCHANT BAR (ROANOKE BAR DIVISION)PRODUCTSA AnglesB ChannelsC Flat barsD Rounds <strong>and</strong> rebarDETAILWe produce a broad range of st<strong>and</strong>ardcarbon-steel merchant-bar products:angles ranging from 1 to 4 inches,3- <strong>and</strong> 4-inch channels, flats from1 to 6 inches wide, strips, round barsup to 1.5 inches in diameter, <strong>and</strong> No. 4<strong>and</strong> No. 5 rebar. These products are soldin industry-st<strong>and</strong>ard lengths. We alsomarket rectangular steel billets.AEND MARKETS Merchant bars are used primarily in light commercialconstruction <strong>and</strong> in joist manufacturing. They are also used in the fabrication ofindustrial <strong>and</strong> commercial equipment <strong>and</strong> by OEM customers in the manufactureof a wide variety of products, such as utility trailers, agricultural equipment <strong>and</strong>implements, material-h<strong>and</strong>ling equipment, <strong>and</strong> specialized transportation <strong>and</strong>manufacturing equipment. Billets are used in manufacturing rolled steel <strong>and</strong> inforging steel parts.B C DANNUAL REPORT 2008A3
steel operationsSPECIALTY SHAPES AND LIGHT STRUCTURAL STEEL (STEEL OF WEST VIRGINIA)CPRODUCTSA Guardrail postsB Industrial truck componentsC Mine railD Truck-trailer crossmembersE Merchant sectionsDETAILWe produce a wide variety ofcarbon-steel specialty shapes,a line of st<strong>and</strong>ard merchant bars<strong>and</strong> light structural shapes, <strong>and</strong>truck-trailer beams that we weld<strong>and</strong> fabricate for the customer.Our specialty shapes, includingdistinctive asymmetric shapesonly we produce, are oftencustom-engineered to meet ourOEM customers’ requirements.ABDEEND MARKETS Specialty shapes serve a wide range of OEM customers,but the primary market is industrial lift-truck manufacturers <strong>and</strong> off-highwayconstruction-equipment manufacturers. We also make rail for mining applications<strong>and</strong> light-rail systems. Our st<strong>and</strong>ard merchant shapes are primarily used inthe construction industry, in such applications as frames for mobile homes <strong>and</strong>recreational vehicles, <strong>and</strong> highway guardrail posts. Truck-trailer beams are usedin the production of truck beds <strong>and</strong> semi-trailers.<strong>Steel</strong> fabricationJOISTS AND DECKING (NEW MILLENNIUM BUILDING SYSTEMS)APRODUCTSA JoistsB DeckingDETAILWe produce steel building components:joists, girders, <strong>and</strong> trusses in a varietyof st<strong>and</strong>ard designs, as well as customconfigurations to satisfy uniquearchitectural <strong>and</strong> structural requirements,including bowstring, arched, scissor,double-pitched, <strong>and</strong> single-pitchedjoists. <strong>Steel</strong> decking: roof, form, <strong>and</strong>composite floor decking.END MARKETS Our joists, girders, trusses, <strong>and</strong> decking products are usedprimarily in the construction of non-residential buildings. Joist products providesupport for roofs <strong>and</strong> floors. Decking is used to bear flooring material, such asconcrete, or to cover roofs. Buildings include commercial, industrial, institutional,<strong>and</strong> government projects, such as shopping centers, big-box stores, fast-foodrestaurants, drug stores, motels, factories, distribution centers, office buildings,schools, churches, hospitals, <strong>and</strong> libraries.BA4STEEL DYNAMICS, INC.
metals recycling (OMNISOURCE CORPORATION)ferrous scrapPRODUCTS WE BUYA Crushed automobilesB Industrial scrapC Clean cast partsAD Rebar scrapEEPRODUCTS WE SELLE No. 2 shredded (pile <strong>and</strong> detail)F No. 1 bundlesBG Plate <strong>and</strong> structuralH No. 1 bushelingFGI TurningsJ Heavy meltK BriquettesCDDETAILS OmniSource purchasesmetals, such as those shown atleft, to be processed for sale.Processing at our facilities includesshredding, compacting, baling,shearing, <strong>and</strong> bundling—yieldingvarious types <strong>and</strong> grades of ferrousscrap (at right). Most recycled steelis sold to steel mills <strong>and</strong> foundries.HJIKnonferrous scrapPRODUCTS WE BUYA Aluminum cansB Copper wireABPRODUCTS WE SELLC Secondary aluminum ingotsD Copper granulesE Stainless steel bundlesCDDETAILS We buy nonferrous scrap as well as recover nonferrous metals fromour shredding operations. We also operate facilities converting nonferrousscrap into forms useful to industry, such as secondary aluminum alloys <strong>and</strong>copper, bronze, <strong>and</strong> stainless steel in a variety of forms.EThe above photos are representative of the wide variety of recycled metals that OmniSource buys <strong>and</strong> sells .ANNUAL REPORT 2008A5
2008 board of directorsKeith E. BusseChairman <strong>and</strong> Chief Executive Officer<strong>Steel</strong> <strong>Dynamics</strong>, <strong>Inc</strong>.Mark D. MillettExecutive Vice President<strong>Steel</strong> <strong>Dynamics</strong>, <strong>Inc</strong>.Richard P. Teets, Jr.Executive Vice President<strong>Steel</strong> <strong>Dynamics</strong>, <strong>Inc</strong>.John C. BatesPresident <strong>and</strong> Chief Executive OfficerHeidtman <strong>Steel</strong> <strong>Products</strong>, <strong>Inc</strong>.Frank D. Byrne, M.D.PresidentSt. Mary’s Hospital Medical CenterMadison, WisconsinPaul B. EdgerleyManaging DirectorBain Capital, <strong>Inc</strong>.Richard J. Freel<strong>and</strong>President <strong>and</strong> Chief Executive OfficerPizza Hut of Fort Wayne, <strong>Inc</strong>.Dr. Jürgen KolbRetiredFormer member of Executive OfficeSalzgitter, AGJames MarcuccilliPresident <strong>and</strong> Chief Executive OfficerSTAR Financial BankJoseph D. RuffoloPrincipalRuffolo Benson, LLCexecutive officers corporate officers corporate managersKeith E. BusseChairman <strong>and</strong> Chief Executive OfficerGary E. HeasleyExecutive Vice President forStrategic Planning <strong>and</strong> Business DevelopmentMark D. MillettExecutive Vice President forMetals Recycling <strong>and</strong> Ferrous Resources,President <strong>and</strong> Chief Operating Officerof OmniSource CorporationRichard P. Teets, Jr.Executive Vice Presidentfor <strong>Steel</strong>making,President <strong>and</strong> Chief Operating Officerof <strong>Steel</strong> OperationsTheresa E. WaglerExecutive Vice PresidentChief Financial OfficerBenjamin A. EisbartVice PresidentHuman ResourcesRichard A. PoinsatteVice PresidentTreasurerBrent A. RitenourVice PresidentInternal AuditJanice E. ConwellCorporate Health <strong>and</strong> Safety ManagerTroy R. EhleCorporate ControllerRobert E. FrancisInformation Technology ManagerFredrick A. WarnerInvestor Relations Managerstockholder informationANNUAL MEETINGMay 21, 20099:00 am EasternGr<strong>and</strong> Wayne CenterCalhoun Ballroom120 West Jefferson BoulevardFort Wayne, Indiana 46802STOCKHOLDER RECORDSComputershare Trust Company, N.A.P.O. Box 43078Providence, Rhode Isl<strong>and</strong> 02940-3078(877) 282-1168www.computershare.comINVESTOR INFORMATIONFred WarnerInvestor Relations Manager(260) 969-3564Fax: (260) 969-3590www.steeldynamics.comE-mail: f.warner@steeldynamics.comCORPORATE OFFICES6714 Pointe Inverness Way, Suite 200Fort Wayne, Indiana 46804(260) 459-3553Fax: (260) 969-3590MARKET INFORMATIONThe company’s stock trades on the NASDAQGlobal Select Market under the symbol STLD.<strong>Steel</strong> <strong>Dynamics</strong> is included in the NASDAQ-100<strong>and</strong> S&P Mid-Cap 400 indices.A6STEEL DYNAMICS, INC.© 2009 <strong>Steel</strong> <strong>Dynamics</strong>, <strong>Inc</strong>.
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