During their conference call on Thursday Nucor reported that net earnings soared in Q1 to $159.8 million compared to a net loss of $11.4 million in Q4 2010 and a net income of $31 million in Q1 2010.
Nucor CEO Daniel DiMicco was pleased with the results, but cautioned that the economic recovery will continue on an uneven path in 2011 and certain arenas like downstream fabrication and construction markets continue to face challenges.
Nonetheless, Nucor noted that the company had the strongest shipments in its flat-rolled and beam sector, and expects its plate and SBQ divisions to remain strong as well, while the structural side remains only consistent. Nucor said that "although we are seeing some signs of market weakness that may impact results near the end of the second quarter, we expect second quarter results to be an improvement over first quarter." Additionally, the company continues to see growing demand from certain end-use markets. "This is most evident in products sold to the manufacturing/industrial sector, including special bar quality products, sheet and plate."
In commenting on the results, Nucor execs explained that while much of the demand in Q1 came from inventory rebuilding, there is high growth in markets such as truck trailer, energy, heavy equipment and agriculture.