Nucor reports record results for first half of 2008

Nucor Corporation announced record consolidated net earnings for the second quarter of 2008 of $580.8 million ($1.94 per diluted share), an increase of 68% over $344.9 million ($1.14 per diluted share) earned in the second quarter of 2007 and an increase of 42% over the $409.8 million ($1.41 per diluted share) earned in the first quarter of 2008.

In the first half of 2008, Nucor’s consolidated net earnings increased 36% to a record $990.5 million ($3.36 per diluted share), compared with net earnings of $725.9 million ($2.39 per diluted share) in last year’s first half.

In the second quarter of 2008, Nucor’s consolidated net sales increased 70% to a record $7.09 billion, compared with $4.17 billion in the second quarter of 2007 and increased 43% compared with $4.97 billion in the first quarter of 2008. Average sales price per ton increased 24% over the second quarter of 2007 and increased 19% over the first quarter of 2008. Total tons shipped to outside customers were 7,734,000 tons in the second quarter of 2008, an increase of 38% over the second quarter of 2007 and an increase of 20% over the first quarter of 2008.

The increases in sales and net earnings are also attributable to the significant acquisitions made by Nucor in the last 18 months, specifically, the acquisition of Harris Steel Group, Inc. (Harris) in March 2007 and The David J. Joseph Company (DJJ) in February 2008. In addition, Nucor has used these two companies as platforms for additional acquisitions to grow the rebar fabrication and scrap businesses.

The average scrap and scrap substitute cost per ton used in the second quarter of 2008 was $456, an increase of 57% over $291 in the second quarter of 2007 and an increase of 37% compared with $333 in the first quarter of 2008. The average scrap and scrap substitute cost per ton used in the first half of 2008 was $396, an increase of 44% over $275 in the first half of 2007.

Total energy costs in the second quarter of 2008 increased $5 per ton from the second quarter of 2007 and increased $2 per ton from the first quarter of 2008. During the first half of 2008, total energy costs increased $5 per ton compared with the first half of 2007.

Total steel shipments increased 9% to a record 12,068,000 tons in the first half of 2008, compared with 11,067,000 tons in last year’s first half. Steel shipments to outside customers increased 5% to 10,597,000 tons in the first half of 2008, compared with 10,119,000 tons in last year’s first half.

In June, Nucor’s board of directors declared a supplemental dividend of $0.20 per share in addition to the $0.32 per share base dividend. The total dividend of $0.52 per share is payable on August 11, 2008 to stockholders of record on June 30, 2008.

Nucor expects that their third quarter results will be strong, with earnings in the range of $1.80 to $1.85 per diluted share.