1022671--2/26/2007--STEEL_DYNAMICS

related topics

{cost, regulation, environmental}

{stock, price, share}

{condition, economic, financial}

{operation, international, foreign}

{acquisition, growth, future}

{debt, indebtedness, cash}

{gas, price, oil}

{operation, natural, condition}

{system, service, information}

{stock, price, operating}

{competitive, industry, competition}

Risks Related to Our Industry In recent years, imports of steel into the United States have adversely affected, and may yet again adversely affect, U.S. steel prices, which would impact our sales, margins and profitability. China s current steelmaking overcapacity coupled with a reduction or slowdown in China s steel consumption could have a material adverse effect on domestic and global steel pricing and could result in increased steel exports into the United States. Increases in prices and limited availability of raw materials and energy may constrain operation levels and reduce profit margins. Our level of production and our sales and earnings are subject to significant fluctuations as a result of the cyclical nature of the steel industry and the industries we serve, particularly the auto industry. Risks Relating to our Business Our stock price may be volatile and could decline substantially. Shares eligible for public sale could adversely affect our stock price We may not continue to pay cash dividends in the future We may encounter supply shortages and increases in the cost of raw materials, energy and transportation. Our senior secured credit agreement, the indenture relating to our 9 % senior unsecured notes due 2009 and the indenture relating to our 4% convertible subordinated notes due 2012 contain restrictive covenants that may independently limit our flexibility. We may face significant price and other forms of competition from other steel producers, which could have a material adverse effect on our business, financial condition, results of operation or prospects. Competition from other materials may have a material adverse affect on our business, financial condition, results of operations or prospects. Equipment downtime or shutdowns could adversely affect our business, financial condition, results of operations or prospects. We may face risks associated with the implementation of our growth strategy. There are risks associated with acquisitions. Environmental regulation imposes substantial costs and limitations on Steel Dynamics operations. Technology, operating and start-up risks associated with our contemplated Mesabi Nugget project may prevent us from realizing the anticipated benefits and could result in a loss of our investment.

Full 10-K form ▸

1022671--2/26/2007--STEEL_DYNAMICS_INC