Nucor Reports Best Second Quarter Earnings in History

SEATTLE (Scrap Monster): Nucor Corporation announced highest second quarter earnings in the company’s history, beating earlier upbeat earnings estimate.

The company reported consolidated net earnings of $683.2 million, or $2.13 per diluted share in second quarter of 2018, significantly higher when compared with the net earnings of $323.0 million, or $1.00 per diluted share during the corresponding quarter last year. It must be noted that the company had posted consolidated net earnings of $354.2 million, or $1.1 per diluted share during the prior quarter.

The net earnings reported notable jump during the first half of the year. The consolidated net earnings surged from $679.9 million, or $2.11 per diluted share in H1 2017 to $1.04 billion, or $3.23 per diluted share during the initial six-month period this year.

John Ferriola, Chairman, Chief Executive Officer and President noted that the company has been successful in capitalizing on the significant investments made over the past decade. The company has increased its workforce by almost 18%. Since 2008, Nucor has invested approximately $8 billion in various projects. The excellent results in H1 2018 are a testimony of its continued operational excellence. The company is committed to extending its superior performance in the second half of 2018 and beyond, Ferriola added.

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The steel mill segment turned out to be the primary driver of significantly improved Q2 earnings. Steel mill product groups, especially sheet mills reported higher average selling price and increased profitability. The other segments to report increased profitability were steel products and raw materials segments. Stronger market conditions aided the quarterly performance, Nucor noted.

Nucor forecasts improved earnings in Q3 this year. The steel mills segment is likely to witness strong performance. The company expects significant margin expansion at its sheet and plate mills. However, raw materials segment may witness margin compression during the third quarter of 2018.