Nucor Corporation has announced its earnings for the second quarter and for the first half of the fiscal year, both of which have declined from the corresponding year-ago periods.
The Charlotte, North Carolina-based steelmaker's net earnings for the second quarter were $344.9 million, a decrease of 23 percent from $450.0 million earned in Q2 '06, and a decrease of nine percent from the $381.0 million earned in Q1 '07. Net sales in the second quarter increased 10 percent from Q2 '06 to $4.17 billion and rose 11 percent compared to Q1 '07 sales.
In the first half of 2007, Nucor's net earnings totaled $725.9 million, a decrease of 13 percent from net earnings of $830.0 million in last year's first half. Net sales in the first half of 2007 increased eight percent from last year's first half to $7.94 billion.
Nucor attributed the decrease in earnings for the second quarter and first half of the current year to softness in the flat rolled market, high imports levels, and reduced demand from the automotive, appliance and housing sectors - factors which ultimately resulted in high service center inventories. In addition to these factors, Nucor says that scrap and energy costs also reduced the company's margins.
In the second half of 2007, Nucor expects its bar shipments will improve over the second quarter pace, and it expects its sheet market will continue in a similar fashion to the first half due to Chinese imports and the continued weak demand from housing and automotive. It predicts that its beam and plate mills will continue to experience strong demand.