Nucor's Q1 earnings drop 14% due to high costs

Nucor’s Q1 earnings drop 14% due to high costs

Largest US steelmaker Nucor Corp., located in North Carolina, yesterday announced that company's net earnings for the first quarter of 2003 fell to $17.8 million with a 14% decrease which is attributed mainly to both high energy costs and raw material prices reaching to 122$/mt level in the first quarter. Added to these reasons, weak demand from commercial construction and manufacturing also had a negative effect on the net earnings. Company's steel production recorded a 32% increase in Q1 of this year and grew up to 4.26 million ton when compared to 3.24 million ton level in the same period a year ago. Nucor's total shipment to domestic and abroad markets reached to 4.35 million ton in the first quarter which refers to a 33% increase compared to first quarter in year 2002, while 4 million ton of this amount was shipped to abroad customers. Furthermore, net sales lifted from $1.08 billion up to $1.48 billion showing an increase of 37%. Nucor stated that, as a result of the weak economic conditions as well as the uncertainty, they expect second quarter earnings to be similar to first quarter's which is below analysts expectations.