Nucor Corp. announced record quarterly earnings and sales for the first half and the second quarter of the year. Nucor's earnings through the first six months of 2004 exceeded the previous record annual earnings.
Nucor's consolidated net earnings for the first half of 2004 were $364.7 million, compared with $26.2 million in the first half of 2003. Consolidated net earnings for this year's second quarter were $251.4 million, compared with $8.4 million in the second quarter of 2003 and $113.2 million in the first quarter of 2004.
In the first half of 2004, Nucor's consolidated net sales increased 68 percent to $5.048.2 billion, compared with $3 billion in last year's first half.
Average sales price per ton increased 47 percent while total tons shipped to outside customers increased 15 percent from the first half of 2003. In the second quarter of 2004, Nucor's consolidated net sales increased 82 percent to $2.761.8 billion, compared with $1.520.5 billion in the second quarter of 2003 and increased 21 percent, compared with $2.286.4 billion in the first quarter of 2004.
Average sales price per ton increased 61 percent from the second quarter of 2003 and increased 26 percent from the first quarter of 2004. Total tons shipped to outside customers increased 13 percent from the second quarter of 2003 and decreased 5 percent from the first quarter of 2004.
The average scrap and scrap substitute cost per ton used increased 69 percent from $127 in the first half of 2003 to $214 in the first half of 2004, and increased 73 percent from $131 in the second quarter of 2003 to $227 in the second quarter of 2004.
After evaluating our options for the steel mill in Kingman, Arizona that we purchased from North Star Steel in the first quarter of 2003, we determined that we will not restart the melt shop. Accordingly, we reduced the value of this asset by $13.2 million in the second quarter of 2004, which is reflected in cost of products sold.
In the first half of 2004, Nucor established records in the steel mills segment for steel production, total steel shipments and steel sales to outside customers. Steel production was 10,081,000 tons, compared with 8,545,000 tons produced in the first half of 2003, an increase of 18 percent. Total steel shipments increased 16 percent to 10,050,000 tons in the first half of 2004, compared with 8,643,000 tons in last year's first half. Steel shipments to outside customers increased 15 percent to 9,182,000 tons in the first half of 2003, compared with 7,993,000 tons in last year's first half. In the steel products segment, steel joist production during the first half of 2004 increased to 252,000 tons, compared with 235,000 tons in the first half of 2003. Steel deck sales decreased to 168,000 tons in the first half of 2003, compared with 172,000 tons in last year's first half. Cold finished steel sales increased to 145,000 tons, compared with 128,000 tons in the first half of 2003.