Nucor Corp. announced record consolidated net earnings of $415.4 million on record consolidated net sales of $3,239.6 million for the third quarter, and consolidated net earnings of $780.1 million on consolidated net sales of $8,287.8 million for the first nine months of 2004. Earnings for the third quarter exceeded the previous record annual earnings. Net earnings per share and average shares outstanding for all periods reflect a two-for-one stock split effective in October 2004.

Third Quarter Results—Consolidated net earnings of $415.4 million ($2.59 per diluted share), compare with $16.0 million ($0.10 per diluted share) in the third quarter of 2003 and $251.4 million ($1.58 per diluted share) in the second quarter of 2004. The record quarterly results are primarily attributable to higher average selling prices and increased margins, accompanied by the successful integration of the coiled plate mill in Tuscaloosa, Ala., and the cold rolling mill in Decatur, Ala.

Consolidated net sales increased 102% to $3,239.6 million, compared with $1,604.0 million in the third quarter of 2003 and increased 17%, compared with $2,761.8 million in the second quarter of 2004. Average sales price per ton increased 87% from the third quarter of 2003 and increased 16% from the second quarter of 2004. Total tons shipped to outside customers increased 8% from the third quarter of 2003 and increased 1% from the second quarter of 2004.

Average scrap and scrap substitute cost per ton used increased 81% from $137 in the third quarter of 2003 to $248 in the third quarter of 2004.

Nucor incurred a charge to value inventories using the LIFO method of accounting of $124.1 million (including a LIFO charge of $6.1 million for Nucor-Yamato Steel Co.), compared with a charge of $26.6 million in the third quarter of 2003 (including a LIFO charge of $6.2 million for Nucor-Yamato Steel Co.).

Nucor revised estimates for environmental reserves as additional information was obtained, reducing environmental reserves by $10.3 million, compared with a reduction of $5.0 million in the third quarter 2003.

Pre-operating and start-up costs of new facilities were $4.5 million compared with $31.3 million in the third quarter of 2003. In 2004, these costs primarily related to the continuing start-up of the Castrip(R) facility at the company’s sheet mill in Crawfordsville, Ind. In 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.

Nine Month Results—Consolidated net earnings of $780.1 million ($4.90 per diluted share) compared with $42.2 million ($0.27 per diluted share) in the first nine months of 2003. Consolidated net sales increased 80% to $8,287.8 million, compared with $4,604.7 million in last year's first nine months. Average sales price per ton increased 61% while total tons shipped to outside customers increased 12% from the first nine months of 2003.

Average scrap and scrap substitute cost per ton used increased 73% from $130 in the first nine months of 2003 to $225 in the first nine months of 2004.

Nucor incurred a charge to value inventories using the LIFO method of accounting of $223.4 million in the first nine months of 2004 (including a LIFO charge of $25.4 million for Nucor-Yamato Steel Co.), compared with a charge of $39.5 million in the first nine months of 2003 (including a LIFO charge of $8.7 million for Nucor-Yamato Steel Co.).

Nucor also revised estimates for environmental reserves as additional information was obtained, reducing environmental reserves by $9.8 million, compared with a reduction of $8.1 million in the first nine months of 2003.

Pre-operating and start-up costs of new facilities decreased to $21.3 million in the first nine months of 2004, compared with $91.5 million in the first nine months of 2003. In 2004, these costs primarily related to the continuing start-up of the Castrip(R) facility at the company’s sheet mill in Crawfordsville, Ind. In 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.

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

Nucor had an effective tax rate of 35.4% in the first nine months of 2004 compared with 17.3% in the first nine months of 2003 and 6.1% for the year 2003, and had an effective tax rate of 34.6% in the third quarter of 2004 compared with 15.3% in the third quarter of 2003. The increase in effective tax rate is primarily due to the effect of increased pre-tax earnings in 2004, partially offset by resolution of certain tax issues in the third quarter of 2004.

Outlook—Due to a temporary market imbalance and traditional seasonal and holiday factors, Nucor expects that fourth quarter total steel shipments will be lower than the third quarter. Fourth quarter shipments will also be impacted by scheduled shut-downs at many of Nucor’s facilities for regular maintenance and new equipment installations that were postponed from earlier quarters. The company expects average sales prices and margins to decrease slightly in the fourth quarter from the record highs established in the third quarter.

Nevertheless, Nucor anticipates that underlying demand will remain strong and earnings will be in the range of $1.85 to $2.05 per diluted share in the fourth quarter of 2004, compared to $.13 per diluted share in the fourth quarter of 2003. Nucor expects to see the strong business conditions experienced in 2004 continue through
2005.

Nucor’s fourth quarter earnings estimate includes the expectation that scrap prices will remain high, resulting in a LIFO charge of $124 million, similar to the expense incurred in the third quarter. Interim LIFO charges are based on estimates of inventory prices and quantities at year-end. These estimates will likely differ from actual amounts, and such differences may be significant.

Nucor and affiliates manufacture steel products, with operating facilities in fourteen 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.