American Recycler News, Inc.

 

Nucor reports lower earnings

Nucor Corporation reported consolidated net earnings of $504.6 million, or $1.58 per diluted share, for the full year 2012, compared with consolidated net earnings of $778.2 million, or $2.45 per diluted share, for the full year 2011. Nucor reported consolidated net earnings of $136.9 million, or $0.43 per diluted share, for the fourth quarter of 2012. By comparison, Nucor reported net earnings of $110.3 million, or $0.35 per diluted share, in the third quarter of 2012 and net earnings of $137.1 million, or $0.43 per diluted share, in the fourth quarter of 2011.

Non-cash inventory related purchase accounting charges associated with their acquisition of Skyline Steel LLC decreased to $12.0 million ($0.02 per diluted share) in the fourth quarter of 2012 compared to $28.2 million ($0.06 per diluted share) in the third quarter of 2012. The full year 2012 Skyline purchase accounting charges were approximately $48.8 million ($0.10 per diluted share).

Third quarter of 2012 results also included a loss on the sale of the assets of Nucor Wire Products Pennsylvania, Inc. of $17.6 million ($0.04 per diluted share). Fourth quarter of 2011 results were impacted by a non-cash gain of $29.0 million ($0.06 per diluted share) for the correction of an actuarial calculation related to the medical plan covering certain eligible early retirees.

For the full year 2012, Nucor’s consolidated net sales decreased 3 percent to $19.43 billion, compared with $20.02 billion for 2011. Average sales price per ton decreased 3 percent from full year 2011. Total tons shipped to outside customers were 23,092,000 tons, a slight increase from 2011 levels.

Nucor’s consolidated net sales decreased 7 percent to $4.45 billion in the fourth quarter of 2012 compared with $4.80 billion in the third quarter of 2012 and decreased 8 percent compared with $4.83 billion in the fourth quarter of 2011. Average sales price per ton decreased 2 percent from the third quarter of 2012 and decreased 4 percent from the fourth quarter of 2011. Total tons shipped to outside customers were 5,478,000 tons in the fourth quarter of 2012, a 5 percent decrease from the third quarter of 2012 and a 4 percent decrease from the fourth quarter of 2011.

The average scrap and scrap substitute cost per ton used for the full year 2012 was $407, a decrease of 7 percent from $439 in 2011. The average scrap and scrap substitute cost per ton used in the fourth quarter of 2012 was $372, a decrease of 2 percent from $380 in the third quarter of 2012 and a decrease of 16 percent from $441 in the fourth quarter of 2011.

Overall operating rates at steel mills were 74 percent for the full year 2012, which is consistent with 2011 and an increase from 70 percent in 2010. Steel mill utilization rates in the fourth quarter of 2012 (71 percent) were flat when compared with the third quarter and with last year’s fourth quarter.