4/22/2010
NEWS BRIEFS
Nucor Fastener Segment Sales Jump

Nucor reported cold finished steel sales, including revenue from Nucor Fastener, jumped 39% to 111,000 tons during the opening quarter of 2010, up 27% over the previous quarter.

In 2009 cold finished steel sales declined 32% to 330,000 tons.

Overall Q1 revenue at Nucor grew 38% to $3.65 billion due to a 48% increase in total tons shipped to outside customers, partially offset by a 7% decrease in average sales price per ton. Net earnings swelled to $31 million compared to a $189.6 million loss during the opening quarter of 2009.

Compared to the previous quarter, net sales increased 24% due to a 19% increase in total tons shipped to outside customers and a 5% increase in average sales price per ton. The steelmaker’s mill utilization rate increased to approximately 73% in the first quarter from 45% in last year’s first quarter and 58% in the fourth quarter.

Nucor Fastener has continued its trade dispute with Asia by appealing the unanimous decision by the U.S. International Trade Commission to reject Nucor Fastener’s antidumping and countervailing petitions against certain standard fasteners from China and Taiwan.

According to Nucor Fastener’s appeal, U.S. production and capacity utilization decreased by 50% during the petition period; Chinese and Taiwanese imports grew to 56.8% of the market by “pervasively underselling U.S. fasteners by significant margins”; and that the U.S. industry lost production jobs, along with declines in shipments, investment, R&D and operating profit at a time when Chinese and Taiwanese producers “substantially increased capacity and inventories.”

From 2006 to 2008 imports of certain standard steel fasteners from China increased by 4.48% and were valued at an estimated $291 million in 2008, according to ITC figures. Imports from Taiwan over the same time period decreased by 19.09% and were valued at an estimated $395 million in 2008.

The appeal is under review by the U.S. Court of International Trade. ©2010 GlobalFastenerNews.com

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