For opening remarks, I would now like to turn the call over to Mr. Keith Busse. Please go ahead, sir.Keith Busse Actually, Melissa, we're going to turn it over to Mr. Warner. Fred Warner Thank you, Keith. Welcome to the Steel Dynamics Fourth Quarter and Full Year 2010 Conference Call. The call is being webcast live January 24, 2011, from Fort Wayne, Indiana. Later today, you'll be able to replay the call from our website or download the call as a podcast. During today's call, our management will be making some statements that are forward-looking. All statements regarding anticipated future results or expectations are intended to be forward-looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements which by their nature are predictive and are not statements of historical facts, are often preceded by such words as believe, anticipate, estimate, expect or other conditional words. These statements are not intended as guarantees of future performance. We caution that actual future events and results may differ materially from such forward-looking statements or projections that are made today. Some factors that could cause actual results to differ include general economic conditions, governmental, monetary and fiscal policy, industrial production level, changes in market supply and demand for our products, foreign imports, conditions in the credit markets, the price and availability of scrap and other raw materials, equipment performance or failures or litigation outcomes. You may find additional information concerning a variety of factors and risks that could cause actual results to differ materially from today's forward-looking statements. Refer to sections entitled Forward-looking Statements and Risk Factors in our most recent annual report on Form 10-K and in our quarterly reports on Form 10-Q as well as in other reports we file from time to time with the Securities and Exchange Commission. These reports are publicly available on the SEC website, www.sec.gov, and on our website www.steeldynamics.com.
Now we'll start today's discussion with comments from our Chairman and Chief Executive Officer, Keith Busse.Keith Busse Good morning, ladies and gentlemen. It is again a pleasure to be with you and to comment on our fourth quarter and yearly results in 2010. As you can see, we had net income in the fourth quarter of $8 million or $0.04 a share. And for the year, $141 million or $0.64 a share. Obviously, it's a fairly significant positive change from the loss suffered in the year '09, which is a small loss of about $8 million about $0.04 per diluted share on the year. I think one of the things I'd like to note is that our net sales in '09 were $4 billion and they climbed this year to $6.3 billion and not quite '08 $8 billion, but given all the growth projects we have in the Hopper and the effects of the market are returning to some resemblance of normalcy, I would expect that our sales next year to probably hit up to the $8 billion level in the year 2011. So as with regard our earnings, I think it's so noted that our earnings were $0.04 that included an impairment charge of $0.03 related to the company's write-off certain fabricating assets, which were necessitated by the acquisition of commercial metals fabrication operations and the fact that we would no longer operate in the future of these assets, certainly in a fabricating vein. I might also note that during the quarter, we had some substantial unrealized gains in nonferrous and that our unrealized losses in OmniSource during the fourth quarter, which amounted to probably after-tax approximately $0.02 a share. So when you add back the impairment to the $0.04 as most of you have realized from all the commentary, I think it was fairly cautioned this morning that SDI was midrange in between the $0.05 and $0.10 that we had fairly on predicted. And if you take into consideration the unrealized hedging losses, which should come back to the company in the first quarter, we were probably closer to $0.09. So almost at the top of the range, if you will. Read the rest of this transcript for free on seekingalpha.com