Nucor Beats Estimates With Positive Net Earnings And Sales
Nucor Corporation announced better than expected financial earnings for fourth quarter 2011. The company reported net earnings of $137.1 million up from a net loss of $11.4 million for 4Q10 with a 25% in net sales. However, the fourth quarter was below third quarter 2011 earnings of $181.5 million while net sales dropped 8%.
Full year net earnings were reported at $778.2 million, up drastically from $134.1 million for total 2010. Total net sales increased 26% from the previous year to $20.02 in 2011 due to average sales price per ton increasing 21% combined with a 5% increase in total tons shipped to outside customers. Tons shipped were 23,044,000 tons for 2011.
Average sales price per ton for the fourth quarter were down 6% from the previous quarter, but up 18% from 4Q10. Total tons shipped were down 2% from the third quarter to 5,683,000 tons, but up 7% from the previous year’s fourth quarter.
Nucor’s press release said, “The average scrap and scrap substitute cost per ton used for the full year 2011 was $439, an increase of 25% over $351 in 2010. The average scrap and scrap substitute cost per ton used in the fourth quarter of 2011 was $441, a decrease of 2% from $449 in the third quarter and an increase of 23% over $359 in the fourth quarter of 2010.”
Operating rates at the steel mills were up 4% from 2010 to 74% for the full year 2011 while utilization rates for 4Q11 were up 3% from 4Q10 to 71%. However, compared to the third quarter, operating rates were down 3%.
The company’s DRI facililty in Louisiana is expected to be completed and started mid 2013.
The company said “margins at our plate and sheet mills continued to be impacted by higher import levels that began in the second quarter of 2011 and new domestic sheet mill supply. Selling prices have recently trended up for both our plate and sheet steel mills while scrap prices have been flat to slightly down. We therefore expect earnings in the first quarter of 2012 to be improved from fourth quarter 2011 levels.” The best markets continue to be automotive, heavy equipment, energy and general manufacturing, along with increased demand for construction products.
Source: Nucor Corporation