Nucor Reports Net Earnings of $91 Million in 2nd Quarter
Nucor Corporation reported consolidated net earnings of $91.0 million, or $.29 per diluted share, for the second quarter 2010 on sales of $4.20 billion. Nucor earned almost two-thirds less during the first quarter when they reported earnings of $31.0 million when they sold $3.65 billion.
Operating rates at the company’s steel mills was 71% compared to 73%. The company reported improvements at their beam and plate mills which were more than offset by declines on their flat rolled steel mills.
In the Nucor earnings press release the company talks about their 50% interest in NuMit, LLC which owns 100% of Steel Technologies (service center with plants in the U.S., Canada and Mexico). Nucor’s 50% interest cost the company approximately $221.3 million. At the time of closing, Nucor extended a $40.0 million loan and a $60.0 million line of credit (of which $54.0 million was drawn down immediately) to Steel Technologies.
Nucor provided the following information about the market in their press release: “…There is a general slowdown taking place across all product lines as the overall economy has entered into a new period of uncertainty. This is the case both in the U.S. and globally. The most challenging markets for our products continue to be those associated with residential and non-residential construction, which continue to show little, if any, strength. This is particularly true for our downstream businesses….”
Nucor will conduct a 2 PM earnings conference call this afternoon with analysts which SMU will cover in detail in another article in our SMU newsletter.
You can receive a free 4-week trial of our newsletter by registering on our website: www.steelmarketupdate.com and clicking on the free trial logo.