Nucor reports 2002 results, S&P ratings remain unchanged
Largest steel producer and recycler of the US,
Nucor Corporation released its 2002 results on February 6, 2003. The company has $4.1 billion annual sales and recycling over 10 million tons of
scrap steel per year.
According to the released data,
Nucor's consolidated net sales for 2002 increased 10% to $4.5 billion compared to $4.1 in 2001. Average sales price per ton increased less than 1% while total tons shipped to outside customers increased 10%.
Nucor's consolidated net earnings for 2002 increased 43% to $162.1 million ($2.07 per share), compared to $113 million ($1.45 per share) in 2001.
In the Q4 of 2002,
Nucor's consolidated net sales increased 26% to $1.2 billion, compared to Q4 results of 2001. This is due to a 7% increase in average sales price per ton and an 18% increase in total tons shipped to outside customers. Net earnings for this year's fourth quarter increased 62% to $43 million ($.55 per share), compared with $26.5 million ($.34 per share) in Q4 of 2001.
Steel
production in 2002 increased to 13'622'000 tons, from 12'316'000 tons of 2001. Total steel shipments were 13'438'000 tons in 2002, compared with 12'141'000 tons a year earlier. Steel sales to outside customers were 12'314'000 tons in 2002, compared with 11'032'000 tons in 2001.
During December of 2002,
Nucor acquired substantially all of the assets of Birmingham Steel Corporation for a cash purchase price of approximately $615 million including $116.9 million in inventory and receivables. Primary assets included in the purchase were Birmingham Steel's four operating mills in Birmingham, Alabama; Kankakee, Illinois; Seattle, Washington; and Jackson, Mississippi, with an estimated combined annual capacity of approximately 2'000'000 tons.
Nucor's flat steel mill, formerly Trico Steel Company, LLC, renamed after the takeover as
Nucor Steel Decatur, continues its operations in Decatur, Alabama.The company reports that the mill produced its first slabs in mid-September, and is now consistently producing hot-rolled coils and pickled and oiled product for outside customers. The Q4
production is recorded as 130'000 tons of hot band and 2003
production forecast is around 1.5 million tons.
Meanwhile Standard&Poors rating services stated in a bulletin today that
Nucor Corp.'s (A+/Stable/A-1) fourth quarter earnings release will have no affect on its ratings on the company. Despite citing weak underlying conditions in the nonresidential
construction market and higher
scrap costs, the company continued to generate financial performance consistent with the ratings.
Nucor Corporation has operating facilities in nine states and among its products are; carbon and alloy steel in bars,
beams, sheet, and
plate; steel joists and joist girders; steel deck; cold finished steel; steel fasteners; metal building systems; and light gauge steel framing.