Charlotte, North Carolina-based Nucor Corporation announced Thursday a net loss of $11.4 million for the fourth quarter of 2010--a stark contrast to the net earnings of $23.5 million in Q3 2010 and $58.9 million in Q4 2009.
However, for the full year of 2010, Nucor reported consolidated net earnings of $134.1 million, compared with a net loss of $293.6 million in 2009.
Nucor's net sales in Q4 2010 were $3.85 billion, a 7 percent decrease from $4.14 billion in Q3 2010, but a 31 percent increase from the $2.94 billion in Q4 2009. Average sales price per ton decreased 2 percent from the third quarter of 2010 and increased 14 percent from the fourth quarter of 2009.
For the full year 2010, Nucor's consolidated net sales increased 42 percent to $15.84 billion, compared with $11.19 billion for 2009. Average sales price per ton increased 13 percent from 2009 levels.
Overall operating rates at our steel mills were 68 percent in the fourth quarter of 2010, which remained unchanged from the third quarter of 2010 and increased from 58 percent in last year's fourth quarter. Steel mill utilization rates increased from 54 percent for the full year 2009 to 70 percent for the full year 2010.
According to Nucor's press release on the results, "Recent price increases for all steel mill products are expected to have a positive impact on earnings as we return to profitability in the first quarter. This positive trend in earnings is expected to continue as we head into the second quarter. We are therefore cautiously optimistic regarding first half volume, pricing and profitability.
"On the negative side, it appears that we will continue to experience volatile raw material costs during the first quarter. We believe end markets are experiencing some real demand improvement that will continue throughout 2011. However, the improvement in operating rates that we will see in the first quarter of 2011 will be the result of a combination of both improving demand and steel buyers reacting to increasing raw material and steel prices. It remains to be seen how much of this improvement is due to real demand."