Nucor's Earnings Recover in Second Quarter
By Metal Center News Staff
on Aug 3, 2020
Nucor Corp., Charlotte, N.C., reported net earnings of $108.9 million, a massive improvement from the $20.3 million in the first quarter, but still well off the $386.5 million posted in the same quarter of 2019.
Net sales in the quarter totaled $4.33 billion, a decline of 26.6 percent from the first quarter of 2019. First-half sales of $10 billion were down 17 percent from the prior year.
"I want to thank my teammates for their dedication and commitment to living our culture in the uncertain environment created by the COVID-19 pandemic during the last few months. Our team's reliability and resilience are being recognized and appreciated by our customers," said Leon Topalian, Nucor president and CEO.
The COVID-19 pandemic continues to have a significant impact on most aspects of Americans' daily lives and has created considerable economic uncertainty. We believe Nucor is well positioned to navigate this environment given our diverse product mix, advantaged cost position, flexible production capability and financial strength. Our most important value during this time remains the health and safety of our teammates, their families and the communities where we operate.
Average sales price per ton in the second quarter of 2020 increased 1 percent compared with the first quarter of 2020 and decreased 10 percent compared with the second quarter of 2019. A total of 5,479,000 tons were shipped to outside customers in the second quarter, a 24 percent decrease from the first quarter and a 19 percent decrease from the second quarter of 2019.
Overall operating rates at the company's steel mills decreased to 68 percent in the second quarter as compared with 89 percent in the first quarter and 84 percent in the second quarter of 2019.
Looking ahead, Nucor executives said the ongoing COVID-19 pandemic continues to cause uncertainty in overall market conditions entering the third quarter of 2020. The company anticipates earnings in the third quarter of 2020 will be similar to the second quarter, with strong performance from downstream products segments due to resiliency in the nonresidential construction markets.