Record improvements from Nucor in first quarter results

Record improvements from Nucor in first quarter results

Nucor Corp., largest steel producer in the US, reported record results for the first quarter of 2004, ending on April 3. According to data released by Nucor, company achieved $113.2 million net earnings. This figure was $17.8 million for the first quarter last year. Besides, net sales for the first quarter were recorded as $2.286 million, indicating an increase of 54% over first quarter of 2003 and 38% over previous quarter. Steel production reached to 4'960'000 tons in the first quarter up from 4'258'000 tons same quarter in 2003. Total 5'145'000 tons of steel were shipped in the aforecited quarter, with 4'726'000 tons shipped to customers abroad. Nucor attributes these record results obtained in sales and earnings to improved demand for their products, which subsequently raised base prices, and effective raw material surcharge implemented in order to offset unprecedently high scrap prices. Average sales price rose up by 33% per ton over first quarter of 2003. Besides significant turnaround gained at its sheet mill in Alabama and plate mill in North Carolina had its positive effect on the results. Nucor forecasts again a cheering second quarter due to expectations of better economic conditions and growing steel demand. Furthermore, it is believed that the rising demand for their products will cover the decrease in surcharges for the second quarter, in line with falling scrap prices, by raising base prices.