Nucor’s Q2 earnings rise over Q1 but fall year-on-year

Nucor Corporation announced Thursday consolidated net earnings of $124.8 million, or $0.39 per diluted share, for the second quarter of 2015. By comparison, Nucor reported net earnings of $67.8 million, or $0.21 per diluted share, in the first quarter of 2015 and net earnings of $147.0 million, or $0.46 per diluted share, in the second quarter of 2014. Second quarter of 2015 diluted net earnings per share of $0.39 was above our guidance range of $0.20 to $0.25 per diluted share due to better than forecasted performance in the steel mills segment.

In the first half of 2015, Nucor reported consolidated net earnings of $192.6 million, or $0.60 per diluted share, compared with consolidated net earnings of $258.1 million, or $0.80 per diluted share, in the first half of last year.

Nucor's consolidated net sales decreased 1 percent to $4.36 billion in the second quarter of 2015 compared with $4.40 billion in the first quarter of 2015 and decreased 18 percent compared with $5.29 billion in the second quarter of 2014. Average sales price per ton decreased 8 percent from the first quarter of 2015 and decreased 13 percent from the second quarter of 2014. Total tons shipped to outside customers were 6,055,000 tons in the second quarter of 2015, a 7 percent increase over the first quarter of 2015 and a decrease of 5 percent from the second quarter of 2014. Total second quarter steel mill shipments increased 9 percent over the first quarter of 2015 and decreased 2 percent from the second quarter of 2014. Second quarter downstream steel products shipments to outside customers increased 12 percent over the first quarter of 2015 and decreased 3 percent from the second quarter of 2014.

In the first half of 2015, Nucor's consolidated net sales decreased 16 percent to $8.76 billion, compared with $10.40 billion in last year's first half. Total tons shipped to outside customers decreased 7 percent from the first half of 2014, while average sales price per ton decreased 10 percent.

In a statement, the company commented: “Earnings in the third quarter of 2015 are expected to be improved compared to the second quarter of 2015 mainly due to improved performance of the steel mills segment. The steel mills segment will benefit from a lower average cost of inventories to begin the third quarter. The strongest end markets continue to be automotive and construction. We expect improved performance in the downstream products segment in the third quarter of 2015 as compared to the second quarter of 2015 due to the continuing gradual improvement in nonresidential construction markets. The performance of the raw materials segment in the third quarter of 2015 is expected to be comparable to the second quarter of 2015.”