Global Fastener News

Nucor Reports Record Profit

Jason Sandefur

Nucor Corp. recorded more profit in the first six months of 2004 than in any 12-month period in the company’s history, according to a news release from the Charlotte, NC-based steelmaker. Consolidated net earnings for the first half of 2004 rose to $364.7 million, more than 12 times the $26.2 million profit reported in the first half of 2003. First half sales jumped 68% to $5.04 billion, with average sales price per ton increasing 47%. “The increases in earnings and sales are due to increased demand for our products and the resulting increase in base prices, the continuation of a raw material surcharge that we initiated in the first quarter of 2004 to address historically high scrap costs,”” the steelmaker stated. The average scrap and scrap substitute cost per ton used increased 69% to $214 in the first half of 2004, including a 73% spike to $227 during Q2.
Second quarter profit soared to $251.4 million, compared with $8.4 million during the second quarter of 2003. Q2 sales increased 82% to $2.76 billion. Average sales price per ton during Q2 increased 61%.
The record financial gains follow news that Nucor will increase its surcharge on steel during the third quarter to cover what the company called a recent surge in scrap prices. “”We expect that the third quarter will be stronger than the second quarter and that improving economic conditions and continuing strong steel demand will contribute to (increased) earnings,”” Nucor noted. Web: nucor.com �2004 FastenerNews.com