4/24/2009
NEWS BRIEFS
Fastener Segment Sales Down at Nucor

Nucor Corp. reported cold finish steel sales, including fasteners, declined 41% to 80,000 tons during the first quarter of 2009.

Overall net sales dropped 47% to $2.65 billion “due to a 43% decrease in total tons shipped to outside customers and a 7% decrease in average sales price per ton.” This led to a net loss of $189.6 million for the quarter, compared with a $409.8 million profit during the first quarter of 2008.

Nucor’s consolidated net sales decreased 47% to $2.65 billion compared with $4.97 billion in the first quarter of 2008 due to a 43% decrease in total tons shipped to outside customers and a 7% decrease in average sales price per ton.

Sequential sales decreased 36% compared with $4.15 billion in the fourth quarter of 2008, hurt by a 14% decrease in total tons shipped to outside customers and a 26% decrease in average sales price per ton.

The average scrap and scrap substitute cost per ton used remained flat at $333 in the first quarters of 2008 and 2009 and decreased 23% from $435 in the fourth quarter of 2008.

Nucor’s steel mill utilization rate plunged to 45% in Q1 from 92% in last year’s first quarter and 48% in the fourth quarter, resulting in a total energy cost hike of $11 per ton.

“As we have progressed from September 2008 to March 2009, we have seen business and market conditions worsen each succeeding month,” the company stated. “Entering the second quarter of 2009, both the U.S. economy and steel market conditions have continued to deteriorate, and we expect a second quarter loss greater than the first quarter as a result.”

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Related Links:

• Nucor