Global Fastener News

Nucor Posts Record Profit

Jason Sandefur

Price increases and improved margins boosted Nucor Corp. earnings to $415.4 million during the third quarter of 2004. The steelmaker said Q3 earnings “exceeded the previous record annual earnings” for the company. Q3 sales more than doubled to $3.2 billion, while the average sales price per ton increased 87% from the third quarter of 2003, and grew 16% from the previous quarter. Total tons shipped to outside customers increased 8%.
Earnings for the first nine months of 2004 soared to $780.1 million, compared with a $42.2 million profit during the third quarter of 2003. Nine-month sales for the Charlotte, NC-based firm jumped 80% to $8.3 billion, while average sales price per ton rose 61%. Nucor reported the average scrap and scrap substitute cost per ton used increased 73% to $225 in the first nine months of 2004.
Nucor established nine-month records in the steel mills segment for steel production, total steel shipments and steel sales to outside customers. Sales of cold finished steel, including fasteners, improved 16% to 211,000 tons. Overall steel production increased 16% to 15.15 million, as total shipments grew 14% to 15 million tons during the period.
Nucor predicted its fourth quarter performance would be diminished by a “temporary market imbalance and traditional seasonal and holiday factors.” However, demand for steel will remain robust. “We expect to see the strong business conditions experienced in 2004 continue through 2005,” the company noted. Web: nucor.com �2004 FastenerNews.com