Nucor Reports Fourth Quarter Results

Nucor Corp. reported four quarter consolidated net earnings of $364.8 million, a 10 percent decline from the previous year’s fourth quarter numbers. The figures for the quarter also is down 4 percent from the third quarter of the year.

For the quarter, Nucor reported a 27 percent increase in net sales to a quarterly record $4.40 billion, compared with $3.47 billion in the fourth quarter of 2006 and increased 3 percent compared with $4.26 billion in the third quarter of 2007.

The company reported that average sales price per ton increased 9 percent from the fourth quarter of 2006 and increased 1 percent from the third quarter of the year. Total tons shipped to outside customers were 5,895,000 tons in the fourth quarter, a 16 percent from the n increase of 16 percent over the fourth quarter of 2006 and an increase of 2 percent over the third quarter.

For last year, consolidated net earnings were $1.47 billion, compared with the record net earnings of $1.76 billion the previous year in 2006. Although net earnings decreased 16 percent from 2006 levels, 2007 was the second-best earnings year in Nucor's history.

Nucor's consolidated net sales for 2007 increased 12 percent to a record $16.59 billion, compared with $14.75 billion in 2006. Average sales price per ton increased 8 percent while total tons shipped to outside customers increased 4 percent from 2006.

The average scrap and scrap substitute cost per ton used increased 17 percent from $243 in the fourth quarter of 2006 to $285 in the fourth quarter of 2007, increased 3 percent from $277 in the third quarter of 2007, and increased 13 percent from $246 in 2006 to $278 in 2007.In the steel mill segment, steel production decreased 1 percent to 22,089,000 tons in 2007, compared with 22,382,000 tons produced in 2006.

Total steel shipments remained flat at 22,347,000 tons in 2007, compared with 22,346,000 tons in 2006. Steel shipments to outside customers decreased 2 percent to 20,235,000 tons in 2007, compared with 20,649,000 tons in 2006.

In the steel products segment, steel joist production during 2007 decreased to 542,000 tons, compared with 570,000 tons in 2006. Steel deck sales increased to 478,000 tons in 2007, compared with 398,000 tons in 2006. Cold finished steel sales increased to 449,000 tons, compared with 327,000 tons in 2006. Sales of fabricated concrete reinforcing steel were 583,000 tons from the acquisition date of Harris Steel Group Inc. near the end of the first quarter of 2007 through the end of the year (approximately 9 months).

Looking forward, the company expects the first quarter of the year to be healthy. The company sees continued strengthening in its bar, beam and plate businesses. Also, the company expects its downstream business, especially rebar fabrication, should remain good.

The strength in its core business segments, although the company notes that scrap price volatility and actual scrap usage costs in the quarter will be a risk impacting first quarter profitability.