Nucor reports record results for first quarter of 2008
Nucor Corporation announced record first quarter net
earnings for their fifth consecutive year.
Consolidated net earnings for the first quarter of 2008 were $409.8 million,
an increase of 8% compared to the first quarter of 2007 net earnings
of $381.0 million and an increase of 12% from the fourth quarter of 2007
net earnings of $364.8 million. Diluted earnings per share increased
12% to $1.41 from $1.26 in the first quarter of 2007 and in the fourth
quarter of 2007. The increase in earnings per share from the first quarter
of 2007 is partially due to the reduced number of shares outstanding
as a result of stock repurchases made in 2007.
Nucor’s consolidated net sales increased 32% to a record $4.97 billion
compared with $3.77 billion in the first quarter of 2007 due to a 15%
increase in average steel sales price per ton, an 11% increase in average
steel products sales price per ton, and a significant increase in steel
products shipments attributable to acquisitions made in 2007.
The increase in sales is also due to the February 29, 2008 acquisition
of the stock of SHV North America Corporation, which owns 100% of The
David J. Joseph Company (DJJ) and its affiliates, for a cash purchase
price of approximately $1.4 billion. DJJ, which now operates as a wholly
owned subsidiary of Nucor Corporation, has been the broker of ferrous
scrap to Nucor since 1969.
The average scrap and scrap substitute cost per ton used increased 29%
from $259 in the first quarter of 2007 to $333 in the first quarter of
2008 and increased 17% from $285 in the fourth quarter of 2007.
Starting with the May 9, 2008 dividend payment, Nucor is increasing the
base quarterly cash dividend rate from $0.30 to $0.32 per share. In addition
to the $0.32 per share base dividend amount, the board of directors approved
the payment of a supplemental dividend of $0.20 per share, for a total
dividend of $0.52 per share.