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Nucor Reports Record
1st Quarter Results

April 23, 2004 — Nucor Corp. announced record consolidated net earnings of $113.2 million on consolidated net sales of $2,286.4 million for the quarter ended April 3, 2004.

Consolidated net earnings of $113.2 million ($1.43 per share) compare with $17.8 million ($0.23 per share) in the first quarter of 2003 and $20.6 million ($0.26 per share) in the fourth quarter of 2003. Consolidated net sales represent a 54% increase compared with $1,480.3 million in the first quarter of 2003 and a 38% increase compared with $1,661.1 million recorded in the fourth quarter of 2003. Average sales price per ton increased 33% while total tons shipped to outside customers increased 16% from the first quarter of 2003.

The average scrap and scrap substitute cost per ton used increased 64% from $122 in the first quarter of 2003 to $200 in the first quarter of 2004. The average scrap cost per ton purchased increased $123 (85%) from March 2003 to March 2004. Nucor incurred a charge to value inventories using the last-in, first-out (LIFO) method of accounting of $32.2 million in the first quarter of 2004 (including a LIFO charge of $7.2 million for Nucor-Yamato Steel Co., of which Nucor owns 51%), compared with a charge of $6.4 million in the first quarter of 2003 (including a LIFO charge of $1.2 million for Nucor-Yamato Steel Co.).

The increases in sales and earnings are due to increased demand for Nucor’s products and the resulting increase in base prices, effective implementation of a raw material surcharge in the first quarter of 2004 to address historically high scrap costs, and the significant turnaround achieved at the company’s two newest mills -- the sheet mill in Decatur, Ala., and the plate mill in Hertford County, N.C.

Start-up Costs—Pre-operating and start-up costs of new facilities decreased to $9.2 million in the first quarter of 2004, compared with $26.7 million in the first quarter of the prior year. For the first quarter of 2004, these costs primarily related to the start-up of the Castrip(R) facility at the Crawfordsville, Ind., sheet mill. In the first quarter of 2003, these costs primarily related to the start-up of the sheet mill in Decatur, Ala., (formerly Trico Steel Co., LLC) and the Castrip facility.

Production—In the first quarter of 2004, Nucor established records in the steel mills segment for steel production, total steel shipments and steel sales to outside customers.

Starting with the May 11, 2004 dividend payment, Nucor's regular quarterly cash dividend rate is being increased from $0.20 to $0.21 per share. Nucor has increased its dividend every year since Nucor began paying dividends 31 years ago.

Outlook—Although surcharges are decreasing in the second quarter as scrap prices decline, base prices are increasing due to strong demand. Nucor expects that improving economic conditions and strengthening steel demand will result in increased margins in the second quarter of 2004. Nucor expects to earn between $2.00 and $2.20 per share in the second quarter of 2004, compared to $.11 per share in the second quarter of 2003.

Nucor had an effective tax rate of 35.9% in the first quarter of 2004, compared with 21.5% in the first quarter of 2003 and 6.1% for the year 2003. The increase in the effective tax rate is primarily due to the effect of increased pre-tax earnings.

With operating facilities in fourteen states, Nucor and affiliates manufacture steel products including 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.

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