Nucor reports first half 2007 results
Nucor Corporation announced consolidated net earnings for the first half of 2007 of $725.9 million, a decrease of 13% from net earnings of $830.0 million in last year’s first half.
Consolidated net earnings of $344.9 million in the second quarter were a decrease of 23% from $450.0 million earned in the second quarter of 2006 and a decrease of 9% from the $381.0 million earned in the first quarter of 2007.
The second quarter earnings per share of $1.14 represent historically strong results, but the earnings were adversely impacted by softness in the sheet market due to high imports of steel and steel bearing manufactured products, particularly from China, and the reduced demand resulting from the slowdown in the automotive, appliance and housing sectors.
The average scrap and scrap substitute cost per ton used in the first half of 2007 was $275, an increase of 14% compared with $242 in the first half of 2006.
During the second quarter, Nucor repurchased approximately 2.5 million shares of Nucor’s common stock at a cost of approximately $154.2 million under a publicly announced stock repurchase program. Approximately 11.6 million shares remain authorized for repurchase.
In the second half of 2007, Nucor expects bar shipments to improve and the sheet market to be challenging due to imports from China and the current condition of the automotive and housing sectors.