Nucor Corporation disclosed consolidated net earnings of $323.0 million, or $1.00 per diluted share, for the second quarter of 2017.
By comparison, Nucor reported net earnings of $356.9 million, or $1.11 per diluted share, for the first quarter of 2017 and net earnings of $243.6 million, or $0.76 per diluted share, for the second quarter of 2016.
In the first half of 2017, Nucor reported consolidated net earnings of $679.9 million, or $2.11 per diluted share, compared with consolidated net earnings of $331.2 million, or $1.03 per diluted share, in the first half of last year.
Included in the first quarter of 2017 earnings are inventory related purchase accounting charges of $9.8 million associated with the acquisitions of Southland Tube and Republic Conduit.
Nucor’s consolidated net sales increased 7 percent to $5.17 billion in the second quarter of 2017 from $4.82 billion in the first quarter of 2017 and increased 22 percent compared with $4.25 billion in the second quarter of 2016. Average sales price per ton in the second quarter of 2017 increased 5 percent from the first quarter of 2017 and increased 17 percent from the second quarter of 2016.
Total tons shipped to outside customers were 6,748,000 tons in the second quarter of 2017, a 2 percent increase from the first quarter of 2017 and a 5 percent increase from the second quarter of 2016. Total second quarter steel mill shipments increased 3 percent from the first quarter of 2017 and increased 7 percent from the second quarter of 2016. Second quarter of 2017 downstream steel products shipments to outside customers increased 9 percent from the first quarter of 2017 and increased 1 percent from the second qurter of 2016.
In the first half of 2017, Nucor’s consolidated net sales increased 25 percent to $9.99 billion, compared with $7.96 billion in last year’s first half, and total tons shipped to outside customers increased 6 percent from the first half of 2016, while average sales price per ton increased 19 percent.
The average scrap and scrap substitute cost per ton used during the second quarter of 2017 was $313, an increase of 10 percent from $284 in the first quarter of 2017 and an increase of 35 percent compared with 2016.
Overall operating rates at our steel mills increased to 90 percent in the second quarter of 2017 as compared to 89 percent in both the first quarter of 2017 and the second quarter of 2016. Operating rates for the first half of 2017 increased to 90 percent as compared with 84 percent for the first half of 2016.
Imports continue to negatively impact the U.S. steel industry. Through the first half of 2017, finished steel imports have increased an estimated 15 percent compared to the same period last year and account for an estimated 27 percent share of the U.S. market. The industry continues to pursue trade cases to combat unfairly traded imports. Final determinations issued earlier this year against cut-to-length steel plate imports from twelve countries are having a positive impact as steel imports of these products have decreased in the first six months of this year compared to the same period last year.
In June, Nucor’s board of directors declared a cash dividend of $0.3775 per share payable on August 11, 2017 to stockholders of record on June 30, 2017. This dividend is Nucor’s 177th consecutive quarterly cash dividend.
Published in the August 2017 Edition of American Recycler News