American Recycler News, Inc.

 

Nucor reports financial results

Nucor Corporation reported consolidated net earnings of $112.3 million, or $0.35 per diluted share, for the second quarter of 2012. By comparison, Nucor reported net earnings of $145.1 million, or $0.46 per diluted share, in the first quarter of 2012 and net earnings of $299.8 million, or $0.94 per diluted share, in the second quarter of 2011.

In the first half of 2012, Nucor reported consolidated net earnings of $257.4 million, or $0.81 per diluted share, compared with consolidated net earnings of $459.6 million, or $1.44 per diluted share, in the first half of last year.

In late June 2012, Nucor completed the acquisition of the entire equity interest in Skyline Steel LLC (“Skyline”) and its subsidiaries for the purchase price of approximately $684 million including most current working capital adjustment estimates. Second quarter results were negatively impacted by non-cash charges of $8.5 million, or $.02 per diluted share, which were not factored into second quarter earnings guidance that was announced prior to the acquisition.

These charges include the impact of purchase accounting adjustments and the elimination of profit associated with steel mills’ sales to Skyline post-acquisition. Based on current projections, the costs associated with inventory-related purchase accounting adjustments will conclude in November 2012. Skyline is now a wholly owned subsidiary of Nucor Corporation and will maintain its main office in Parsippany, New Jersey.

Nucor’s consolidated net sales increased 1 percent to $5.10 billion in the second quarter of 2012 compared with $5.07 billion in the first quarter of 2012 and decreased slightly compared with $5.11 billion in the second quarter of 2011. Average sales price per ton increased slightly from the first quarter of 2012 and decreased 6 percent from the second quarter of 2011. Total tons shipped to outside customers were 5,925,000 tons in the second quarter of 2012, a slight increase from the first quarter of 2012 and an increase of 6 percent over the second quarter of 2011. Total second quarter steel mill shipments increased 7 percent over the second quarter of 2011 and were down 1 percent from the first quarter of 2012. Second quarter downstream steel products shipments to outside customers increased 10 percent over the second quarter of 2011 and 19 percent over the first quarter of 2012.

In the first half of 2012, Nucor’s consolidated net sales increased 2 percent to $10.18 billion, compared with $9.94 billion in last year’s first half. Total tons shipped to outside customers increased 2 percent over the first half of 2011, while average sales price per ton was unchanged.

The average scrap and scrap substitute cost per ton used in the second quarter of 2012 was $427, a decrease of 4 percent from $445 in the first quarter of 2012 and a decrease of 4 percent from $444 in the second quarter of 2011. The average scrap and scrap substitute cost per ton used in the first half of 2012 was $436, an increase of 1 percent over $433 in the first half of 2011.