Nucor Reports for Quarter, First Half of Year

Nucor Corp. reported record consolidated net earnings and sales for the first half and second quarter of 2006.

Nucor's consolidated net earnings for the first half of 2006 were $831.9 million, an increase of 23 percent over net earnings of $677.4 million in last year's first half. Consolidated net earnings of $452.8 million in this year's second quarter were an increase of 40 percent over $322.7 million earned in the second quarter of 2005 and an increase of 19 percent from the $379.2 million earned in the first quarter of 2006.

In the first half of 2006, Nucor's consolidated net sales increased 14 percent to $7.35 billion, compared with $6.47 billion in last year's first half. Average sales price per ton was flat while total tons shipped to outside customers increased 14 percent from the first half of 2005. In the second quarter, Nucor's consolidated net sales increased 21 percent to $3.81 billion, compared with $3.15 billion in the second quarter of 2005 and increased 7 percent compared with $3.55 billion in the first quarter of 2006. Average sales price per ton increased 5 percent from the second quarter of 2005 and increased 4 percent from the first quarter of 2006. Total tons shipped to outside customers were a record 5,819,000 tons in the second quarter of 2006, an increase of 15 percent over the second quarter of 2005 and an increase of 4 percent over the first quarter of 2006.

The average scrap and scrap substitute cost per ton used in the first half of 2006 was $242, a decrease of 7 percent compared with $259 in the first half of 2005. The average scrap and scrap substitute cost per ton used in the second quarter of 2006 was $247, flat compared with $246 in the second quarter of 2005 and an increase of 4 percent compared with $237 in the first quarter of 2006. Total energy costs increased approximately $3 per ton from the first half of 2005 to the first half of 2006, decreased $1 per ton from the second quarter of 2005 to the second quarter of 2006, and decreased $4 per ton from the first quarter of 2006 to the second quarter of 2006.

In the steel mills segment, steel production increased 15 percent to 11,519,000 tons in the first half of 2006, compared with 10,051,000 tons produced in the first half of 2005. Total steel shipments increased 14 percent to 11,616,000 tons in the first half of 2006, compared with 10,146,000 tons in last year's first half. Steel shipments to outside customers increased 14 percent to 10,713,000 tons in the first half of 2006, compared with 9,381,000 tons in last year's first half. In the steel products segment, steel joist production during the first half of 2006 increased to 281,000 tons, compared with 262,000 tons in the first half of 2005. Steel deck sales decreased to 179,000 tons in the first half of 2006, compared with 181,000 tons in last year's first half. Cold finished steel sales increased to 187,000 tons, compared with 176,000 tons in the first half of 2005.