Nucor reports record results for third quarter 2008

Nucor Corporation announced record consolidated net earnings for the third quarter of 2008 of $734.6 million ($2.31 per diluted share), an increase of 93 percent from the $381.2 million ($1.29 per diluted share) earned in the third quarter of 2007 and an increase of 26 percent compared with $580.8 million ($1.94 per diluted share) earned in the second quarter of 2008.

Consolidated net earnings for the first nine months of 2008 were a record $1.73 billion ($5.70 per diluted share), an increase of 56 percent from net earnings of $1.11 billion ($3.68 per diluted share) in last year’s first nine months.

In the third quarter of 2008, Nucor’s consolidated net sales increased 75 percent to a record $7.45 billion, compared with $4.26 billion in the third quarter of 2007 and increased 5 percent compared with $7.09 billion in the second quarter of 2008. Average sales price per ton increased 51 percent from the third quarter of 2007 and increased 21 percent from the second quarter of 2008. Total tons shipped to outside customers were 6,701,000 tons in the third quarter of 2008, an increase of 16 percent over the third quarter of 2007 and a decrease of 13 percent compared to the second quarter of 2008.

The increases in sales and net earnings are attributable in part to the significant acquisitions made by Nucor in the last 21 months, including Harris Steel Group, Inc. (Harris) in March 2007 and The David J. Joseph Company (DJJ) in February 2008. Nucor has also 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 increased 92 percent from $277 in the third quarter of 2007 to $533 in the third quarter of 2008, and increased 17 percent from $456 in the second quarter of 2008. The average scrap and scrap substitute cost per ton used in the first nine months of 2008 increased 60 percent to $439 compared to $275 in the first nine months of 2007.

In September, 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 November 11, 2008 to stockholders of record on September 30, 2008. The payment of a supplemental dividend in any future period will depend upon many factors, including Nucor’s earnings, cash flow and financial position.