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toppick08 · Oct 20, 2008

Nucor Reports Record Results for Third Quarter and First Nine Months of 2008
CHARLOTTE, N.C., Oct. 16 /PRNewswire-FirstCall/ -- Nucor Corporation (NYSE: NUE) announced today record consolidated net earnings for the third quarter of 2008 of $734.6 million ($2.31 per diluted share), an increase of 93% from the $381.2 million ($1.29 per diluted share) earned in the third quarter of 2007 and an increase of 26% compared with $580.8 million ($1.94 per diluted share) earned in the second quarter of 2008.

Consolidated net earnings for the first nine months of 2008 were a record $1.73 billion ($5.70 per diluted share), an increase of 56% from net earnings of $1.11 billion ($3.68 per diluted share) in last year's first nine months.

In the third quarter of 2008, Nucor's consolidated net sales increased 75% to a record $7.45 billion, compared with $4.26 billion in the third quarter of 2007 and increased 5% compared with $7.09 billion in the second quarter of 2008. Average sales price per ton increased 51% from the third quarter of 2007 and increased 21% from the second quarter of 2008. Total tons shipped to outside customers were 6,701,000 tons in the third quarter of 2008, an increase of 16% over the third quarter of 2007 and a decrease of 13% compared to the second quarter of 2008.

In the first nine months of 2008, Nucor's consolidated net sales increased 60% to a record $19.51 billion, compared with $12.20 billion in last year's first nine months. Average sales price per ton increased 30% while total tons shipped to outside customers increased 23% compared to the first nine months of 2007.

The increases in sales and net earnings are attributable in part to the significant acquisitions made by Nucor in the last 21 months, including Harris Steel Group, Inc. ("Harris") in March 2007 and The David J. Joseph Company ("DJJ") in February 2008. Nucor has also used these two companies as platforms for additional acquisitions to grow the rebar fabrication and scrap businesses.

Nucor's performance is not tied to any one steel market due to our product line diversity. With the acquisition of Harris and other downstream products companies, Nucor's steel products annual capacity has more than doubled since the beginning of 2007 to more than 4.5 million tons. In addition, these companies provide our steel mills with a profitable base load of volume.

The average scrap and scrap substitute cost per ton used increased 92% from $277 in the third quarter of 2007 to $533 in the third quarter of 2008, and increased 17% from $456 in the second quarter of 2008. The average scrap and scrap substitute cost per ton used in the first nine months of 2008 increased 60% to $439 compared to $275 in the first nine months of 2007.

Nucor incurred a charge to value inventories using the last-in, first-out (LIFO) method of accounting of $140.0 million ($0.25 per diluted share, after tax) in the third quarter of 2008, compared with a charge of $11.0 million ($0.02 per diluted share, after tax) in the third quarter of 2007 and a charge of $214.0 million ($0.42 per diluted share, after tax) in the second quarter of 2008. In the first nine months of 2008, the LIFO charge was a record $423.0 million ($0.82 per diluted share, after tax), compared with a charge of $102.0 million ($0.20 per diluted share, after tax) in the first nine months of 2007.

Total energy costs in the third quarter of 2008 increased $7 per ton from the third quarter of 2007 and increased $3 per ton from the second quarter of 2008. During the first nine months of 2008, total energy costs increased $5 per ton compared with the first nine months of 2007.

In the steel mills segment, steel production increased 5% to 17,384,000 tons in the first nine months of 2008, compared with 16,503,000 tons produced in the first nine months of 2007.

Total steel shipments increased 5% to 17,506,000 tons in the first nine months of 2008, compared with 16,663,000 tons in last year's first nine months. Steel shipments to outside customers increased 1% to 15,285,000 tons in the first nine months of 2008, compared with 15,157,000 tons in last year's first nine months.

In the steel products segment, steel joist production during the first nine months of 2008 decreased to 391,000 tons, compared with 409,000 tons in the first nine months of 2007. Steel deck sales increased to 388,000 tons in the first nine months of 2008, compared with 355,000 tons in last year's first nine months. Cold finished steel sales increased to 394,000 tons compared to 322,000 tons in the first nine months of 2007. Sales of fabricated concrete reinforcing steel were 669,000 tons compared to 385,000 in the first nine months of 2007.