Nucor Corp. Consolidated Earnings Take a Hit in Third Quarter

SEATTLE (Scrap Monster): Charlotte, N.C.-headquartered Nucor Corporation announced subdued earnings during Q3 this year. The earnings had slumped in second quarter too.

The steelmaker reported consolidated net earnings of $275 million or $0.90 per diluted share. This is in comparison with the net earnings of $386.5 million or $1.26 per diluted share in the prior quarter. The earnings registered notable decline from the corresponding third quarter in 2018, when net earnings had totalled $676.7 million or $2.13 per diluted share. Also, Nucor reported consolidated net earnings of $1.16 billion or $3.78 per diluted share in the initial nine-month period of the current year.

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Commenting on the results, John Ferriola, Chairman and CEO, Nucor noted that plate and sheet market conditions softened during the third quarter. However, spending in non-residential construction market remained healthy. The company was able to deliver continued strong performance from its metal buildings, piling, joist and deck divisions and improved performance from its rebar fabrication division.

The company reported 7% decline in consolidated net sales from the prior quarter and 19% from the year-ago quarter. Nucor’s sales totalled $5.46 billion in the third quarter of 2019. The shipments to outside customers declined 3% over the prior quarter. However, the total steel mill shipments remained more or less consistent. The overall steel mill operating rate declined to 83% as compared to 84% in the second quarter.

The average scrap and scrap substitute cost at $299 per ton was down significantly by 20% over the year. When compared with Q2 this year, it was down by 9%.