Nucor Corporation reported 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, or $0.02 per diluted share, associated with the recent 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 quarter of 2016.
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 $232 in the second quarter of 2016. The average scrap and scrap substitute cost per ton used in the first half of 2017 was $298, an increase of 40 percent from $213 in 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. Last month, the U.S. International Trade Commission made final injury determinations affirming the Department of Commerce’s antidumping duties in the steel concrete reinforcing bar (rebar) case against Japan and Turkey, as well as final countervailing duties on rebar imports from Turkey.
A final decision regarding Taiwan is still pending. In May, the government determined that there is a reasonable indication that the U.S. steel industry is materially injured or threatened with material injury by reason of carbon and certain alloy steel wire rod imports from ten countries. As a result, the government will continue its wire rod antidumping and countervailing duty investigations, and is expected to issue preliminary duty determinations in the coming months.
Published in the September 2017 Edition of American Recycler News