Weakened demand for sheet steel, significant decreases in scrap prices, and accounting for inventory acquired with the purchase of Marion Steel have led Nucor to revise its outlook for the second quarter ending July 2, 2005.

In April, Nucor had estimated second quarter earnings to be in the range of $1.95 to $2.15 per diluted share. Nucor now expects to be near the lower end of that range. The revised outlook includes a positive impact from valuing inventories using the last-in, first-out (LIFO) method of accounting that is significantly higher than originally forecast.

The significant decrease in scrap prices has resulted in decreased spot and contract pricing for finished steel products that will be delivered in the latter part of the second quarter. As scrap prices continue to fall, there will be near-term timing differences between the decrease in the raw materials surcharge and the production cost of using the existing, higher priced scrap. Production costs will be favorably impacted in the third quarter as Nucor begins to consume the newer, lower-cost scrap inventories. Going forward, Nucor’s competitiveness will be significantly enhanced as pricing declines are offset by lower scrap costs.

Although market conditions have softened in the sheet market, Nucor expects that demand will improve over the remainder of the year. While the inventory overhang in the sheet market has lasted longer than anticipated, Nucor believes that inventory levels will decrease throughout the third and fourth quarters. In addition, Nucor continues to benefit from product line diversification, and the fact that approximately 65% of sheet mill volume is committed to contract customers. Nucor still views 2005 as one of the best years in its profitable history, with a strong opportunity for a second consecutive record earnings year.

Nucor and affiliates manufacture steel products, with operating facilities in sixteen states. Products include carbon and alloy steel bars, beams, sheet and plate; steel joists and joist girders; steel deck; cold finished steel; steel fasteners; metal building systems; and light gauge steel framing. Nucor is the nation's largest recycler.