Nucor Corp. announced consolidated net earnings of $322.7 million on consolidated net sales of $3.15 billion for the second quarter, and consolidated net earnings of $677.4 million on consolidated net sales of $6.47 billion for the first half of 2005.

Second Quarter Results—The $322.7 million consolidated net earnings ($2.03 per diluted share) reflect a 28% increase over $251.4 million ($1.58 per diluted share) earned in the second quarter of 2004, and a 9% decrease from the $354.7 million ($2.20 per diluted share) earned in the first quarter of 2005. Consolidated net sales of $3.15 billion reflect a 14% increase compared with $2.76 billion in the second quarter of 2004 and a 5% decrease compared with $3.32 billion in the first quarter of 2005.

Average sales price per ton increased 8% from the second quarter of 2004 and decreased 6% from the first quarter of 2005. Total tons shipped to outside customers were a record 5,063,000 tons in the second quarter of 2005, an increase of 5% over the second quarter of 2004 and an increase of 1% over the first quarter of 2005.

The average scrap and scrap substitute cost per ton used, $246, reflects an 8% increase from $227 in the second quarter of 2004, and a 10% decrease from $272 in the first quarter of 2005. Total energy costs increased $5 (17%) per ton from the second quarter of 2004 to the second quarter of 2005, and increased $3 (8%) per ton from the first quarter of 2005 to the second quarter of 2005. Nucor also incurred a second quarter credit to value inventories using the last-in, first-out (LIFO) method of accounting of $69.9 million, compared with a charge of $67.1 million in the second quarter of 2004.

In the steel mills segment, steel production decreased 3% from 5,108,000 tons in the first quarter of 2005 to 4,943,000 tons in the second quarter. Steel shipments to outside customers remained flat at 4,693,000 tons in the second quarter of 2005, compared with 4,688,000 tons in the first quarter.

In June 2005, Nucor's wholly owned subsidiary, Nucor Steel Marion, Inc., purchased substantially all of the assets of Marion Steel Co. for a cash purchase price of approximately $108.7 million. The facility is a bar products mill that manufactures angles, flats, rebar, rounds and signposts. Located in Marion, Ohio, the mill is in close proximity to 60% of the steel consumption in the United States. The facility has annual capacity of approximately 400,000 tons.

During the second quarter of 2005, Nucor repurchased 4.0 million shares of Nucor's common stock at a cost of approximately $205.8 million under a publicly announced stock repurchase program. Approximately 4.5 million shares remain authorized for repurchase under the current program.

First Half Results—The $677.4 million consolidated net earnings ($4.23 per diluted share) reflect an increase of 86% over net earnings of $364.7 million ($2.30 per diluted share) in last year's first half. The $6.47 billion consolidated net sales reflect a 28% increase compared with $5.05 billion in last year's first half. Average sales price per ton increased 25% while total tons shipped to outside customers increased 3% from the first half of 2004.

The average scrap and scrap substitute cost per ton used, $259, reflects a 21% increase from $214 in the first half of 2004. Total energy costs increased approximately $4 (12%) per ton from the first half of 2004 to the first half of 2005. Nucor also incurred a credit to value inventories using the last-in, first-out (LIFO) method of accounting of $96.0 million in the first half of 2005, compared with a charge of $99.3 million in the first half of 2004.

In the steel mills segment, steel production remained flat at 10,051,000 tons in the first half of 2005, compared with 10,081,000 tons produced in the first half of 2004. Total steel shipments increased 1% to 10,146,000 tons in the first half of 2005, compared with 10,050,000 tons in last year's first half. Steel shipments to outside customers increased 2% to 9,381,000 tons in the first half of 2005, compared with 9,182,000 tons in last year's first half.

In the steel products segment, steel joist production during the first half of 2005 increased to 262,000 tons, compared with 252,000 tons in the first half of 2004. Steel deck sales increased to 181,000 tons in the first half of 2005, compared with 168,000 tons in last year's first half. Cold finished steel sales increased to 176,000 tons, compared with 145,000 tons in the first half of 2004.

Outlook—Nucor expects third quarter earnings to be below both the third quarter of 2004 and the second quarter of 2005 due principally to the conditions in the sheet market. The company believes that earnings will be in the range of $1.60 to $1.80 per diluted share. While the sheet market will be largely responsible for this decrease, Nucor is currently seeing improvements in the market for sheet products, and believes that this improvement trend will continue.

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.