Steel Surcharge Boosts Nucor Earnings

John Wolz

Surging steel prices helped Nucor Corp. report a six-fold increase in net profit to $113.2 million during the first quarter of 2004. Q1 net sales gained 54% to $2.29 billion. Average price per ton rose 33%, while shipments improved 16% to 5.15 million tons.
Cold finished steel sales, including fasteners, grew 7.2% to 74,000 tons.

Q1 results were also boosted by a shipment surcharge of up to $110 per ton implemented during the period. While the surcharge will be lowered in May, base prices for steel continue to rise, prompting Nucor to predict increased margins throughout 2004.
The Charlotte, NC-based steelmaker noted that scrap costs increased 64% to $200 per ton during the past 12 months. Web: nucor.com �2004 FastenerNews.com