American Recycler News, Inc.

 

Nucor reports quarterly results

Nucor Corporation reported consolidated net earnings of $145.1 million, or $0.46 per diluted share, for the first quarter of 2012. Diluted earnings per share of $0.46 for the first quarter are greater than their guidance range of $0.30 to $0.35 per share due primarily to actual March shipments to outside customers in the steel mills segment exceeding the expectations included in earnings guidance.

Nucor’s consolidated net sales increased 5 percent to $5.07 billion compared with $4.83 billion in the first quarter of 2011 due to a 6 percent increase in average sales price per ton partially offset by a 1 percent decrease in total tons shipped to outside customers. Consolidated net sales increased 5 percent compared with $4.83 billion in the fourth quarter of 2011 due to a 1 percent increase in average sales price per ton and a 4 percent increase in total tons shipped to outside customers. First quarter downstream steel products shipments to outside customers increased 3 percent over the first quarter of 2011 and decreased 3 percent from the fourth quarter of 2011.

The average scrap and scrap substitute cost per ton used during the first quarter of 2012 was $445, up 5 percent over $424 in the first quarter of 2011.

Overall operating rates at the steel mills remained relatively flat at approximately 79 percent in the first quarter of 2012 as compared to 80 percent in the first quarter of 2011, but increased from 71 percent in the fourth quarter of 2011.

Construction is ongoing on the 2,500,000 ton DRI facility in Louisiana and is on schedule for completion and beginning of start-up in mid-2013.

During the first quarter of 2012, the David J. Joseph Company, through its wholly owned subsidiaries, acquired three metal recycling companies. These acquisitions will provide an estimated additional annual capacity of 275,000 tons.

In February, Nucor’s board declared a cash dividend of $0.365 per share payable on May 11, 2012 to stockholders of record on March 30, 2012. This dividend is Nucor’s 156th consecutive quarterly cash dividend.

Nucor acquires Skyline Steel

Nucor Corporation has signed a stock purchase agreement to acquire the membership interests of Skyline Steel LLC and its subsidiaries from ArcelorMittal, for approximately $605 million. Skyline Steel will be a wholly owned subsidiary of Nucor Corporation and will maintain its headquarters in Parsippany, New Jersey.

Skyline Steel LLC is a steel foundation distributor serving the U.S., Canada, Mexico and the Caribbean. Skyline distributes high quality products to service the most challenging applications including marine construction, bridge and highway construction, heavy civil construction, storm protection, underground commercial parking, and environment containment projects in the infrastructure and construction industries.

Nucor anticipates that this transaction will close promptly after the satisfaction of all closing conditions and the receipt of required regulatory approvals.