Nucor Reports 2nd Quarter Earnings
Nucor Corporation reported 2nd Quarter earnings this morning of $299.8 million, or $.94 per diluted share. The company reported earnings of $159.8 million during the 1st Quarter 2011.
Nucor’s sales increased to $5.11 billion during the second quarter 2011 while average sales prices improved by 13% when compared to the 1st Quarter.
Capacity utilization rates of all Nucor mills was 71% down from 80% recorded during the 1st Quarter. The capacity utilization rates were negatively impacted due weather related damage and the resulting power outages (Tuscaloosa and Decatur, AL plants).
New Sheet Supply & Imports Putting Pressure on Nucor
In the Nucor press release the company had this to say about competition in flat rolled sheet markets:
“As we expected, our profitability significantly improved from the first quarter to the second quarter, as price increases for steel mill products caught up with higher raw material costs. Demand in end markets such as automotive, heavy equipment, energy and general manufacturing continues to incrementally improve, benefiting special bar quality, sheet and plate products. However, new domestic supply in the sheet market and increases in imports of sheet steel have begun to put significant pressure on prices and margins. Unless the supply/demand/pricing dynamics reverse themselves, the sheet market will be the most challenging for the industry in the third quarter. Accordingly, we expect third quarter results to be lower than second quarter, but by how much remains to be seen. Those markets associated with residential and non-residential construction are not robust; however, they are stable and slowly improving. Despite the challenges throughout this downturn, our combined construction-related businesses (steel mills and downstream facilities) have remained strong profit contributors. We will provide quantitative earnings guidance later in the quarter.”
Nucor will host a conference call with analysts this afternoon.