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Nucor’s Q1 2016 earnings beat Q1 2015, but fall short of previous quarter

Thursday, 21 April 2016 20:51:13 (GMT+3)   |   San Diego
       
Nucor Corporation announced today consolidated net earnings of $70.8 million for the first quarter of 2016. By comparison, Nucor reported net earnings of $67.8 million for the first quarter of 2015 and adjusted net earnings of $144.7 million for the fourth quarter of 2015.

Nucor's consolidated net sales decreased 16 percent to $3.72 billion in the first quarter of 2016 from $4.40 billion in the first quarter of 2015 and increased 7 percent compared with $3.46 billion in the fourth quarter of 2015. Average sales price per ton in the first quarter of 2016 decreased 23 percent from the first quarter of 2015 and decreased 11 percent from the fourth quarter of 2015.

Total tons shipped to outside customers were 6,148,000 tons in the first quarter of 2016, a 9 percent increase from the first quarter of 2015 and a 20 percent increase from the fourth quarter of 2015. Total first quarter steel mill shipments increased 16 percent from the first quarter of 2015 and increased 27 percent from the fourth quarter of 2015. First quarter downstream steel products shipments to outside customers decreased 1 percent from the first quarter of 2015 and decreased 6 percent from the fourth quarter of 2015.

As for an outlook on the next quarter, the company commented: “We expect earnings in the second quarter of 2016 to be significantly improved from the first quarter of 2016. Performance of the steel mills segment is expected to improve in the second quarter of 2016 as compared to the first quarter of 2016 as recently announced price increases for many of our products are being accepted in the market. This improved performance by the steel mills segment in the second quarter of 2016 will be tempered by rising scrap prices.  We expect increased profitability for our downstream products segment in the second quarter of 2016 as compared to the first quarter of 2016 due to seasonal factors as improving weather conditions benefit nonresidential construction markets. The performance of the raw materials segment is expected to improve in the second quarter of 2016 as compared to the first quarter of 2016 due to improved pricing at both our scrap processing businesses and DRI facilities.”



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