Nucor reports another record profit level for Q2

Thursday, 22 July 2021 18:50:34 (GMT+3)   |   San Diego
       

Nucor Corporation today announced record quarterly consolidated net earnings of $1.51 billion for the second quarter of 2021. By comparison, Nucor reported consolidated net earnings of $942.4 million for the first quarter of 2021 and $108.9 million for the second quarter of 2020.

Average sales price per ton in the second quarter of 2021 increased 20 percent compared with the first quarter of 2021 and increased 49 percent compared with the second quarter of 2020. A total of 7,482,000 tons were shipped to outside customers in the second quarter of 2021, a 4 percent increase from the first quarter of 2021 and a 37 percent increase from the second quarter of 2020.

Total steel mill shipments in the second quarter of 2021 increased 3 percent as compared to the first quarter of 2021 and increased 41 percent as compared to the second quarter of 2020. Steel mill shipments to internal customers represented 20 percent of total steel mill shipments in the second quarter of 2021, compared with 21 percent in both the first quarter of 2021 and the second quarter of 2020. Downstream steel product shipments to outside customers in the second quarter of 2021 increased 9 percent from the first quarter of 2021 and increased 18 percent from the second quarter of 2020.

Overall operating rates at the company's steel mills increased to 97 percent in the second quarter of 2021 as compared to 95 percent in the first quarter of 2021 and 68 percent in the second quarter of 2020.

In a press release, Nucor said all three operating segments are continuing to generate robust profitability as overall strong demand is supporting higher average selling prices. Earnings of the steel mills segment significantly improved in the second quarter of 2021 as compared to the first quarter of 2021, primarily driven by the significant increase in profitability of the company’s sheet and plate mills.

The steel products segment's earnings in the second quarter of 2021 also increased from the first quarter of 2021. The steel mills segment and the steel products segment set new records for profitability in the second quarter of 2021. After setting a new record for segment earnings in the first quarter of 2021, earnings from the raw materials segment decreased in the second quarter of 2021 due to increased raw material input costs.

Nucor said it expects earnings in the third quarter of 2021 to be the highest quarterly earnings in Nucor history, surpassing the record set in the second quarter of 2021. The company said primary drivers for the expected increase in earnings in the third quarter of 2021 are improved pricing and margins in the steel mills segment. Nucor expects increased profitability across the steel mills segment, with the largest increase at the company’s sheet mills. The steel products segment and the raw materials segment are expected to have increased earnings in the third quarter of 2021 compared to the second quarter of 2021, Nucor said.


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