Nucor's 13% Surge in Consolidated Net Sales Boosts Earnings

SEATTLE (Scrap Monster): Nucor Corporation announced results for the first quarter of 2019. The company reported consolidated net earnings of $1.63 per diluted share during Q1 ’19, recording significant improvement over the earnings of $1.10 per diluted share during the first quarter of 2018.

The company reported 13% surge in consolidated net sales during the quarter, when compared with Q1 ’18. The tonnage of shipments to outside customers has declined marginally by 3% over the year. Also, total steel mill shipments were down by 4%. Nucor reported an average scrap and scrap substitute cost of $352 per ton, 4% higher from $337 per ton in the first quarter of 2018.

The lower average selling prices and margins for sheet products badly impacted the company’s earnings from steel mills segment. Also, adverse weather conditions led to shipment delays. The margin compression in DRI business affected the performance of Nucor’s raw materials segment.

Commenting on the results, John Ferriola, Nucor's Chairman, Chief Executive Officer and President stated that the year-on-year jump in Q1 ’19 earnings is mainly attributed to its diversified business model. The primary contributors were plate, bar and structural mills, he noted. The company will continue to bring new projects online and simultaneously evaluate other profitable growth opportunities.

Nucor expects similar earnings in Q2 of 2019. It foresees consistent performance from steel mills segment and significant improvement in profitability of steel products segment. However, the performance by raw materials segment is likely to decrease during the second quarter of 2019.