Nucor announced today consolidated net earnings of $159.6 million for the fourth quarter of 2016 and $796.2 million for fiscal 2016.
Consolidated net sales decreased 8 percent to $3.96 billion in the fourth quarter of 2016 compared with $4.29 billion in the third quarter of 2016 and increased 14 percent compared with $3.46 billion in the fourth quarter of 2015.
Average sales price per ton decreased 7 percent from the third quarter of 2016 and was consistent with the fourth quarter of 2015. Total tons shipped to outside customers were 5,815,000 tons in the fourth quarter of 2016, a 1 percent decrease from the third quarter of 2016 and an increase of 14 percent from the fourth quarter of 2015.
Total fourth quarter steel mill shipments decreased 1 percent from the third quarter of 2016 and increased 16 percent from the fourth quarter of 2015. Fourth quarter downstream steel products shipments to outside customers decreased 11 percent from the third quarter of 2016 and remained consistent with the fourth quarter of 2015.
For fiscal 2016, Nucor's consolidated net sales decreased 1 percent to $16.21 billion, compared with $16.44 billion for fiscal 2015. Total tons shipped to outside customers in fiscal 2016 were 24,309,000, an increase of 7 percent from fiscal 2015, while average sales price per ton decreased 8 percent.
Overall operating rates at Nucor’s steel mills decreased to 74 percent in the fourth quarter of 2016 as compared to 76 percent in the third quarter of 2016 and increased compared to 68 percent in the fourth quarter of 2015. Steel mill operating rates for the full year 2016 increased to 80 percent as compared to 73 percent for the full year 2015.
As for an outlook, Nucor said in a statement that earnings in the first quarter of 2017 are expected to increase compared to the fourth quarter of 2016.
“We believe full year 2017 profitability could significantly exceed the level achieved for 2016. Prices began to increase during the fourth quarter for our steel mills segment and we expect that trend to continue into the first quarter of 2017. We expect improved volume in the first quarter of 2017 as compared to the fourth quarter of 2016 for the steel mills segment, particularly at our sheet and plate mills. Scrap and other commodities prices increased through the end of 2016 and service center inventories remain low. Higher input costs and declining imports are now causing the market to find an improved and more sustainable level that we expect to benefit 2017.”