Nucor reports higher profits

Nucor Corporation announced consolidated net earnings of $299.8 million, or $0.94 per diluted share, for the second quarter of 2011.

By comparison, Nucor reported net earnings of $159.8 million, or $0.50 per diluted share, in the first quarter of 2011 and net earnings of $91.0 million, or $0.29 per diluted share, in the second quarter of 2010. These increases in profits of 88 percent and 229 percent, respectively, were achieved despite the rebalancing by our customers of supply chain inventories, the impact on the manufacturing/auto sector of the devastating Japanese earthquake/tsunami and the lost sales, production and shipments from the weather-related power outages and historic river flooding in North America.

In the first half of 2011, Nucor reported consolidated net earnings of $459.6 million, or $1.44 per diluted share, compared with consolidated net earnings of $122.0 million, or $0.38 per diluted share, in the first half of last year.

Nucor’s consolidated net sales increased 6 percent to $5.11 billion in the second quarter of 2011 compared with $4.83 billion in the first quarter of 2011 and increased 22 percent compared with $4.20 billion in the second quarter of 2010. Average sales price per ton increased 13 percent from the first quarter of 2011 and increased 21 percent from the second quarter of 2010. Total tons shipped to outside customers were 5,598,000 tons in the second quarter of 2011, a decrease of 6 percent from the first quarter of 2011 and an increase of 1 percent over the second quarter of 2010. Total second quarter steel mill shipments increased 6 percent over the second quarter of 2010 and were down 6 percent from the first quarter of 2011. Second quarter downstream steel products shipments to outside customers increased 3 percent over the second quarter of 2010 and 12 percent over the first quarter of 2011.

The average scrap and scrap substitute cost per ton used in the second quarter of 2011 was $444, an increase of 5 percent over $424 in the first quarter of 2011 and an increase of 19 percent over $373 in the second quarter of 2010. The average scrap and scrap substitute cost per ton used in the first half of 2011 was $433, an increase of 26 percent over $345 in the first half of 2010.

In June, Nucor’s board of directors declared a cash dividend of $0.3625 per share payable on August 11, 2011 to stockholders of record on June 30, 2011. This dividend is Nucor’s 153rd consecutive quarterly cash dividend.