Nucor Corporation (NYSE: NUE) announced today consolidated net earnings of $354.2 million, or $1.10 per diluted share, for the first quarter of 2018. By comparison, Nucor reported consolidated net earnings of $383.9 million, or $1.20 per diluted share, for the fourth quarter of 2017 and $356.9 million, or $1.11 per diluted share, for the first quarter of 2017.
“Nucor’s disciplined strategy for profitable growth is working,” said John Ferriola, Nucor’s chairman, chief executive officer and president. “Our 2017 earnings were Nucor’s highest annual earnings since the cyclical peak year of 2008. The positive momentum has clearly carried over into 2018, as evidenced by our strong first quarter earnings and a bullish second quarter outlook.”
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. Included in the fourth quarter of 2017 results was a net benefit of $175.2 million, or $0.55 per diluted share, related to the impacts of U.S. federal tax legislation enacted in the fourth quarter of 2017. Included in the first quarter of 2017 results were inventory related purchase accounting charges of $9.8 million, or $0.02 per diluted share, associated with the recent acquisitions of Southland Tube and Republic Conduit.
Nucor’s consolidated net sales increased 9 percent to $5.57 billion in the first quarter of 2018 compared with $5.09 billion in the fourth quarter of 2017 and increased 16 percent compared with $4.82 billion in the first quarter of 2017. Average sales price per ton in the first quarter of 2018 increased 3 percent compared with the fourth quarter of 2017 and increased 9 percent compared with the first quarter of 2017. Total tons shipped to outside customers were 6,967,000 tons in the first quarter of 2018, a 6 percent increase from both the fourth quarter of 2017 and the first quarter of 2017. Total steel mill shipments in the first quarter of 2018 increased 8 percent from the fourth quarter of 2017 and increased 7 percent from the first quarter of 2017. Downstream steel products shipments to outside customers in the first quarter of 2018 increased 1 percent from the fourth quarter of 2017 and increased 15 percent from the first quarter of 2017.
The average scrap and scrap substitute cost per ton used during the first quarter of 2018 was $337, a 6 percent increase compared to $317 in the fourth quarter of 2017 and an increase of 19 percent compared to $284 in the first quarter of 2017.
Overall operating rates at Nucor’s steel mills increased to 92 percent in the first quarter of 2018 as compared to 82 percent in the fourth quarter of 2017 and 88 percent in the first quarter of 2017.
Total steel mill energy costs in the first quarter of 2018 increased approximately $1 per ton compared to both the fourth quarter of 2017 and first quarter of 2017 due to higher electricity unit costs.
Nucor’s liquidity position remains strong with $760.0 million in cash and cash equivalents as of March 31, 2018. Subsequent to the end of the first quarter, Nucor amended and extended their untapped $1.5 billion revolving credit facility to mature in April 2023.
Published in the June 2018 Edition
