Nucor Reports Strong Quarter

Nucor Corp. announced record quarterly earnings and sales for the most recent quarter. Nucor's consolidated net earnings for the quarter were $113.2 million, compared with $17.8 million in the first quarter of 2003 and $20.6 million in the fourth quarter of 2003. Nucor's net sales increased 54 percent to $2.286.4 billion, compared with $1.480.3 billion in the first quarter of 2003 and increased 38 percent compared with $1.661.1 billion recorded in the fourth quarter of 2003.

Average sales price per ton increased 33 percent while total tons shipped to outside customers increased 16 percent from the first quarter of 2003.

The average scrap and scrap substitute cost per ton used increased 64 percent from $122 in the first quarter of 2003 to $200 in the first quarter of 2004. The average scrap cost per ton purchased increased $123 (85 percent) from March 2003 to March 2004.

The company noted that the increases in sales and earnings are due to increased demand for the company’s products and the resulting increase in base prices, the effective implementation of a raw material surcharge in the first quarter of 2004 to address historically high scrap costs, and the significant turnaround achieved at our two newest mills -- the sheet mill in Decatur, Ala., and the plate mill in Hertford County, N.C.

In the first quarter 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 4.96 million tons in the first quarter, compared with 4.258 million tons produced in the first quarter of 2003. Total steel shipments were 5.145 million tons, compared with 4.346 million tons in last year's first quarter. Steel sales to outside customers were 4.726 million tons, compared with 4.040 million tons in last year's first quarter.

In the steel products segment, steel joist production during the first quarter was 116,000 tons, compared with 107,000 tons in the first quarter of 2003. Steel deck sales were 74,000 tons, compared with 80,000 tons in last year's first quarter. Cold finished steel sales were 74,000 tons, compared with 69,000 tons in the first quarter of 2003.

The company added that although the surcharges are decreasing in the second quarter as scrap prices decline, base prices are increasing due to strong demand for our products. The company expects that improving economic conditions and strengthening steel demand will result in increased margins in the second quarter of the year.