Nucor Corp. announced consolidated net earnings of $341.4 million on net sales of $3.09 billion for the fourth quarter, and consolidated net earnings of $1.12 billion on consolidated net sales of $11.38 billion for the full year 2004. Net earnings per share and average shares outstanding for all periods reflect a two-for-one stock split effective in October 2004.

Fourth Quarter Results — Consolidated net earnings for this year's fourth quarter were $341.4 million ($2.12 per diluted share), compared with $20.6 million ($0.13 per diluted share) in the fourth quarter of 2003. Consolidated net sales increased 86% to $3.09 billion, compared with $1.66 billion in the fourth quarter of 2003. From the fourth quarter of 2003 to the fourth quarter of 2004, average sales price per ton increased 85% and total tons shipped to outside customers increased 1%.

The average scrap and scrap substitute cost per ton used increased 79% from $155 in the fourth quarter of 2003 to $278 in the fourth quarter of 2004. Nucor incurred a charge to value inventories using the last-in, first-out (LIFO) method of accounting of $152.5 million (including a LIFO charge of $11.3 million for Nucor-Yamato Steel Co.), compared with a charge of $75.5 million in the fourth quarter of 2003 (including a LIFO charge of $8.9 million for Nucor-Yamato Steel Co.).

Pre-operating and start-up costs of new facilities decreased to $7.5 million compared with $26.0 million in the fourth quarter of 2003.

Full Year Results — Nucor's consolidated net earnings for 2004 were $1.12 billion ($7.02 per diluted share), compared with $62.8 million ($0.40 per diluted share) in 2003. Increased earnings 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 82% to $11.38 billion, compared with $6.27 billion in 2003. Average sales price per ton increased 66% while total tons shipped to outside customers increased 9% from 2003.

The average scrap and scrap substitute cost per ton used increased 74% from $137 in 2003 to $238 in 2004. Nucor incurred a charge to value inventories using the last-in, first-out (LIFO) method of accounting of $375.9 million in 2004 (including a LIFO charge of $36.7 million for Nucor-Yamato Steel Co., of which Nucor owns 51%), compared with a charge of $115.0 million in 2003 (including a LIFO charge of $17.6 million for Nucor-Yamato Steel Co.).

During 2004, Nucor revised estimates for environmental reserves as additional information was obtained, reducing environmental reserves by $10.0 million, compared with a reduction of $8.3 million in 2003. In both the fourth quarter of 2004 and 2003, Nucor reduced estimates for environmental reserves by $.2 million.

Pre-operating and start-up costs of new facilities decreased to $28.8 million in 2004, compared with $117.5 million in 2003. In 2004, these costs primarily related to the continuing start-up of the Castrip^(R) facility 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.

Production, Shipment and Sales Records — In 2004, Nucor established company records in its steel mills segment for steel production, total steel shipments and steel sales to outside customers.

Steel production was 13% higher than in 2003, while total steel shipments increased 10%. Steel shipments to outside customers increased 9% and steel joist production increased 4% compared to 2003. Steel deck sales increased 3%, and cold finished steel sales increased 14% compared to 2003.

Nucor had an effective tax rate of 35.2% in 2004 compared with 6.1% in 2003, and had an effective tax rate of 34.7% in the fourth quarter of 2004 compared with (29.9%) in the fourth quarter of 2003. The increase in the 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 second half of 2004. In the fourth quarter of 2004 and 2003, Nucor recorded refundable state income tax credits of $4.1 million and $3.1 million, respectively.

Outlook — Nucor expects to earn between $1.70 and $1.90 per diluted share in the first quarter of 2005, compared with $0.72 per diluted share in the first quarter of 2004. The first quarter is typically the weakest quarter of the year due to seasonal softness in the construction market because of weather conditions. Nucor expects that the strong business conditions experienced in 2004 will continue through 2005 and that the second and third quarters of 2005 will be stronger than the first quarter.

Nucor is one of the largest steel producers in the United States and is the nation's largest recycler. Nucor and affiliates are manufacturers of 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.