Nucor Corp., based in Charlotte, N.C., has reported net earnings of $58.9 million for the fourth quarter of 2009, an improvement over quarterly losses through the first three quarters of 2009. The company’s net income declined from 2008’s fourth quarter figure of $105.9 million.
For the full year, Nucor reported a net loss of $293.6 million compared with net earnings of $1.83 billion for 2008.
In the fourth quarter, Nucor's consolidated net sales decreased 6 percent to $2.94 billion, compared with $3.12 billion in the third quarter of 2009. Consolidated net sales for the quarter decreased 29 percent compared with $4.15 billion in the fourth quarter of 2008. The average sales price per ton increased 4 percent from the third quarter of 2009, though it decreased 35 percent from the fourth quarter of 2008.
More than 4.6 million tons were shipped to outside customers for the quarter, a decrease of 9 percent from the third quarter of 2009 and an increase of 8 percent over the fourth quarter of 2008.
For all of 2009, Nucor's net sales reportedly decreased 53 percent to $11.19 billion compared with $23.66 billion for 2008. The average sales price per ton decreased 32 percent, while total tons shipped to outside customers decreased 30 percent from 2008 levels.
Fourth quarter results were significantly affected by reduced earnings in Nucor’s downstream, long products and scrap businesses, according to the company. However, Nucor’s sheet mills benefited from the absence of high-cost pig iron inventories. The average scrap and scrap substitute cost per ton used in the fourth quarter of 2009 was $276, a decrease of 8 percent compared with $299 in the third quarter and a decrease of 37 percent from $435 in the fourth quarter of 2008. For the full year, the average scrap and scrap substitute cost per ton used was $303, a decrease of 31 percent from $438 in 2008.
Overall steel mill use decreased from 69 percent in the third quarter of 2009 to 58 percent in the fourth quarter of 2009, according to the company, and increased from 48 percent in 2008’s fourth quarter. Steel mill utilization rates decreased from 80 percent for the full year 2008 to 54 percent for the full year 2009. The company says the quarter-over-quarter decrease in utilization was because of fourth quarter seasonal issues that are separate of the general economic slowdown in light of the holidays and year-end plant shutdowns by some of our customers.
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