Nucor Corporation reported net earnings of $501.8 million, or $1.63 per diluted share, for the first quarter of 2019. By comparison, Nucor reported consolidated net earnings of $646.8 million, or $2.07 per diluted share, for the fourth quarter of 2018 and $354.2 million, or $1.10 per diluted share, for the first quarter of 2018.
“Our diversified business model helped us to once again deliver a significant year-over-year improvement in first quarter earnings,” said John Ferriola, Nucor’s chairman, chief executive officer and president. “Our plate, bar, and structural mills were strong contributors in the first quarter, and several of our downstream businesses also increased earnings as compared to the year ago period.”
Nucor’s consolidated net sales decreased 3 percent to $6.10 billion in the first quarter of 2019 compared with $6.30 billion in the fourth quarter of 2018, and increased approximately 10 percent compared with $5.57 billion in the first quarter of 2018. Included in the first quarter of 2019 results was a benefit of $33.7 million, or $0.08 per diluted share, related to the gain on the sale of an equity method investment in the raw materials segment. Included in the first quarter of 2018 results was an expense of $21.8 million, or $0.07 per diluted share, related to the write off of deferred tax assets due to the change in the tax status of a subsidiary.
Average sales price per ton in the first quarter of 2019 decreased 4 percent compared with the fourth quarter of 2018 and increased 13 percent compared with the first quarter of 2018. A total of 6,767,000 tons were shipped to outside customers in the first quarter of 2019, a 1 percent increase from fourth quarter of 2018 and a 3 percent decrease from the first quarter of 2018. Total steel mill shipments in the first quarter of 2019 increased 2 percent from the fourth quarter of 2018 and decreased 4 percent from the first quarter of 2018. Downstream steel products shipments to outside customers in the first quarter of 2019 decreased 2 percent from the fourth quarter of 2018 and decreased 3 percent from the first quarter of 2018.
The average scrap and scrap substitute cost per ton used during the first quarter of 2019 was $352, a 2 percent decrease compared to $359 in the fourth quarter of 2018 and an increase of 4 percent compared to $337 in the first quarter of 2018.
Overall operating rates at the company’s steel mills decreased to 87 percent in the first quarter of 2019 as compared to 88 percent in the fourth quarter of 2018 and 92 percent in the first quarter of 2018.
Nucor’s liquidity position remains very strong with $1.6 billion in cash and cash equivalents as of March 30, 2019.
During the first quarter of 2019, Nucor repurchased approximately 1.2 million shares of its common stock for an average price of $60.69 per share. At March 30, 2019, Nucor had approximately 304,786,000 shares outstanding and approximately $1.4 billion available under its share repurchase program.
Published in the June 2019 Edition
