Charlotte, North Carolina-based Nucor reported Thursday net income of $778.2 million for the full year 2011, compared to $134.1 million for the full year 2010. Net earnings for Q4 2011 of $137.1 million were higher than total earnings in all of 2010. In Q4 2010, Nucor incurred an $11.4 million net loss.
In a press release, Nucor said that its end markets such as automotive, heavy equipment, energy and general manufacturing have continued to experience improvements in demand, benefitting special bar quality, sheet and plate products. There have also been small but encouraging signs of improvement in Nucor's construction products business.
However, margins at Nucor's plate and flats mills were impacted by higher import levels that began in Q2 2011 and new domestic sheet mill supply. DiMicco joked that in his opinion, imports should be down 20 to 30 percent this year, but realistically, imports "are not going to go away" and Nucor monitors import levels on a daily basis.
As for scrap, average scrap and scrap substitute cost per ton used for the full year 2011 was $439, an increase of 25 percent over $351 in 2010. The average scrap and scrap substitute cost per ton used in Q4 of 2011 was $441, a decrease of 2 percent from $449 in Q3 2011 and an increase of 23 percent over $359 in Q4 2010.
But looking forward to February, Nucor anticipates that scrap prices will fall moderately going into February but may bounce back in March. The US has experienced a mild winter so far and Nucor made strategic overseas raw material buys that are expected to come in next month.