Nucor Corp. said its fourth quarter net earnings declined by 66 percent. The company attributed the drop to depressed steel prices and weak demand from nonresidential construction.
Nucor reported quarterly net earnings of $26.5 million compared with net earnings of $79.8 million, in the year-earlier quarter. The results included a gain of $20.2 million related to the sale of one of its businesses, Nucor Iron Carbide.
Sales for the quarter fell 3 percent, to $979.6 million from $1.009 billion a year ago. Nucor said the decline was due to a 16 percent drop in composite sales price per ton, resulting from the dumping of imports.
Nucor Corporation's consolidated sales for 2001 decreased 10 percent to $4.139 billion, compared with $4.586 billion in 2000, primarily due to an 18 percent decrease in composite sales price per ton. Nucor's consolidated net earnings for the year were $113 million, compared with $311 million in 2000.
Pre-operating and start-up costs of new facilities increased to $97.8 million in 2001, compared with $50.9 million in 2000. For the fourth quarter, pre-operating and start-up costs increased to $31 million, compared with $21 million in the fourth quarter of 2000.
Nucor established new fourth quarter and annual tonnage records for steel production, total steel shipments and steel shipments to outside customers in 2001. Steel production in 2001 was 12,316,000 tons, compared with 11,271,000 tons produced in 2000. Total steel shipments were 12,141,000 tons in 2001, compared with 10,980,000 tons in 2000. Steel sales to outside customers were 11,032,000 tons, compared with 9,779,000 tons in 2000. Steel joist production for 2001 was 532,000 tons, compared with 613,000 tons a year earlier. Steel deck sales were 344,000 tons, compared with 353,000 tons in 2000. Cold finished steel sales were 203,000 tons, compared with 250,000 tons in 2000.
Construction continues on Nucor's new facility using the Castrip technology in Crawfordsville, Indiana. Start-up of this facility to cast steel strip is expected to be in the second quarter of 2002.