Nucor Corporation disclosed consolidated net earnings of $227.1 million, or $0.71 per diluted share, for the third quarter of 2015.
By comparison, Nucor reported net earnings of $124.8 million, or $0.39 per diluted share, in the second quarter of 2015 and net earnings of $245.4 million, or $0.76 per diluted share, in the third quarter of 2014. Third quarter of 2015 diluted net earnings per share of $0.71 was above our guidance range of $0.45 to $0.50 per diluted share due to a larger than forecasted LIFO credit and better than forecasted performance in the steel mills segment.
In the first 9 months of 2015, Nucor reported consolidated net earnings of $419.7 million, or $1.30 per diluted share, compared with consolidated net earnings of $503.5 million, or $1.57 per diluted share, in the first nine months of last year.
Nucor’s consolidated net sales decreased 3 percent to $4.23 billion in the third quarter of 2015 compared with $4.36 billion in the second quarter of 2015 and decreased 26 percent compared with $5.70 billion in the third quarter of 2014. Average sales price per ton remained consistent with the second quarter of 2015 and decreased 15 percent from the third quarter of 2014. Total tons shipped to outside customers were 5,883,000 tons in the third quarter of 2015, a 3 percent decrease from the second quarter of 2015 and a decrease of 13 percent from the third quarter of 2014.
Total third quarter steel mill shipments decreased 3 percent from the second quarter of 2015 and decreased 10 percent from the third quarter of 2014. Third quarter downstream steel products shipments to outside customers increased 9 percent over the second quarter of 2015 and decreased 3 percent from the third quarter of 2014.
In the first 9 months of 2015, Nucor’s consolidated net sales decreased 19 percent to $12.98 billion, compared with $16.10 billion in last year’s first nine months. Total tons shipped to outside customers decreased 9 percent from the first nine months of 2014, while average sales price per ton decreased 11 percent.
The average scrap and scrap substitute cost per ton used in the third quarter of 2015 was $262, a 3 percent decrease from $271 in the second quarter of 2015 and a decrease of 31 percent from $379 in the third quarter of 2014. The average scrap and scrap substitute cost per ton used in the first nine months of 2015 was $285, a decrease of 26 percent from $387 in the first nine months of 2014.
Overall operating rates at steel mills decreased to 69 percent in the third quarter of 2015 as compared with 73 percent in the second quarter of 2015 and decreased from 81 percent in the third quarter of 2014. Steel mill utilization decreased to 69 percent in the first nine months of 2015 from 78 percent in the first 9 months of 2014.
Earnings in the fourth quarter of 2015 are expected to decrease compared to the third quarter of 2015 due to continued deterioration in global steel markets. A slowing economy in China is causing further global overcapacity and resulting in significant levels of steel imports into the U.S. market.
Published in the December 2015 Edition of American Recycler News