Nucor Sees Earnings Drop

Nucor Corp. reported net income of $33.3 million, a 59 percent drop from the previous year’s quarterly figure of $81.8 million. The company cited the continued problems with steel prices remaining depressed as the biggest factor for the problem. However, the company expects third-quarter results to improve slightly.

"Total steel shipments were up a record 12.2 percent year over year," Terry Lisenby, Nucor chief financial officer, told investors on a conference call. "But prices are at the lowest levels in 15 years."

Revenues fell 11 percent to $1.08 billion from $1.21 billion a year earlier, mainly due to a 20 percent decline in prices, Nucor said in a statement.

Start-up costs of new facilities doubled for the quarter to $20 million from $10 million in the quarter a year earlier. The company said start-up costs should total about $60 million for the year.

The second quarter and first half of 2001 established new tonnage records for steel production, total steel shipments and steel shipments to outside customers. In the first half of 2001, steel production was 6,206,000 tons, compared with 5,879,000 tons produced in the first half of 2000. Total steel shipments were 6,163,000 tons in the first half of 2001, compared with 5,712,000 tons in last year's first half. Steel shipments to outside customers were 5,594,000 tons, compared with 5,085,000 tons in the year earlier half. Steel joist production during the first half of 2001 was 265,000 tons, compared with 300,000 tons a year earlier. Steel deck sales were 168,000 tons, compared with 166,000 tons in last year's first half. Cold finished steel sales were 115,000 tons, compared with 139,000 tons in the first half of 2000.