Steel Products
Nucor Reports Full Year Earnings of $500 Million
Written by Sandy Williams
January 30, 2013
Written by: Sandy Williams
Nucor Corporation announced today that fourth quarter earnings were $136.9 million and flat compared to net earnings of $137.1 million in the same quarter of 2011. Earnings were up in the fourth quarter from $110.3 million in the third quarter of 2012. Total net earnings for 2012 were $504.6 million, compared with net earnings of $778.2 million for 2011.
Net sales for 2012 decreased 3 percent to $19.43 billion from $20.02 billion in 2011. The average sales price per ton decreased 3 percent from 2011. Total tons shipped to outside customers were 23 million tons, up slightly from 2011 levels. Scrap costs decreased 7 percent for the year to $407 per ton and average cost was $372 per ton in the fourth quarter.
Fourth quarter sales dropped 7 percent in the fourth quarter to $4.45 billion from $4.80 in third quarter, a drop of 8 percent from levels in 2011. Shipments in the fourth quarter were at 5.48 million tons, down 4 percent from 2011, and down 5 percent from third quarter 2012.
Steel capacity rates were at 74 percent for 2012, consistent with 2011 levels. Utilization was flat at 71 percent when comparing third and fourth quarters of 2012.
Nucor reports construction on its 2.5 million ton DRI facility in Louisiana is on schedule for start-up in mid 2013 despite weather challenges. Startup and operating costs are forecast to be $8-9 million per quarter for the first half of the year with profits beginning in the third quarter. The facility is expected to be running at full capacity by the end of the year.
Nucor will have invested 8 billion dollars by the end of 2013 as part of its five prong investment strategy. Most notable, is Nucor’s partnership with Encana Oil and Gas that is expected to provide enough natural gas for all of Nucor’s U.S. plants.
Sandy Williams
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