On April 22,
Nucor Corporation (
Nucor), the largest
US mini-mill and steel scrap recycler, announced that in the first quarter of 2010 it recorded a consolidated net profit of $31 million, compared to a net loss of $189.6 million in the first quarter of 2009 and a net income of $58.9 million in the last quarter of 2009.
In the January-March period of this year,
Nucor's consolidated net sales rose by 38 percent year on year, reaching $3.65 billion, due to a 48 percent increase in total tons shipped to outside customers, partially offset by a seven percent decrease in the average sales price per ton. As compared with the last quarter of 2009, the company's net sales improved by 24 percent, due to a 19 percent increase in total tons shipped to outside customers and a five percent increase in the average sales price per ton.
The average scrap and scrap substitute cost used during the first quarter of 2010 was $350/mt, down five percent year on year and up 15 percent compared to the fourth quarter of 2009.
Nucor's steel mill utilization rate increased to approximately 73 percent in the first quarter from 45 percent in last year's first quarter and 58 percent in the fourth quarter. As a result of this increased utilization, total energy costs decreased approximately $11/mt from the first quarter of 2009 to the first quarter of 2010 and decreased approximately $1.1/mt from the fourth quarter of 2009.
"Overall, operating performance improved from the beginning of the quarter to the end of the quarter, and we expect the second quarter to be an improvement over our first quarter results. The most challenging markets for our products continue to be those associated with residential and non-residential construction, which continue to show little, if any, strength. This is particularly true for our downstream businesses," reads the company statement.