Nucor Corp. announced record consolidated net earnings of $251.4 million on sales of $2,761.8 million for the second quarter, and consolidated net earnings of 364.7 million on consolidated net sales of $5,048.2 million for the first half of 2004.

Second Quarter Results—Consolidated net earnings of $251.4 million ($3.17 per diluted share) compare with $8.4 million ($0.11 per diluted share) in the second quarter of 2003 and $113.2 million ($1.43 per diluted share) in the first quarter of 2004.

Consolidated net sales increased 82% to $2,761.8 million, compared with $1,520.5 million in the second quarter of 2003 and increased 21%, compared with $2,286.4 million in the first quarter of 2004. Average sales price per ton increased 61% from the second quarter of 2003 and increased 26% from the first quarter of 2004. Total tons shipped to outside customers increased 13% from the second quarter of 2003 and decreased 5% from the first quarter of 2004. The average scrap and scrap substitute cost per ton used increased 73% from $131 in the second quarter of 2003 to $227 in the second quarter of 2004.

Pre-operating and start-up costs were $7.6 million compared with $33.5 million in the second quarter of 2003.

Six Month Results—Consolidated net earnings for the first half of 2004 were $364.7 million ($4.59 per diluted share), compared with $26.2 million ($0.33 per diluted share) in the first half of 2003. Consolidated net sales increased 68% to $5,048.2 million, compared with $3,000.7 million in last year's first half.

Average sales price per ton increased 47% while total tons shipped to outside customers increased 15% from the first half of 2003. The average scrap and scrap substitute cost per ton used increased 69% from $127 in the first half of 2003 to $214 in the first half of 2004.

Nucor incurred a charge to value inventories using the last-in, first-out (LIFO) method of accounting of $99.3 million in the first half of 2004 (including a LIFO charge of $19.3 million for Nucor-Yamato Steel Co., of which Nucor owns 51%), compared with a charge of $12.9 million in the first half of 2003 (including a LIFO charge of $2.5 million for Nucor-Yamato Steel Co.). In the second quarter of 2004, the LIFO charge was $67.1 million (including a LIFO charge of $12.1 million for Nucor-Yamato Steel Co.), compared with a charge of $6.5 million in the second quarter of 2003 (including a LIFO charge of $1.3 million for Nucor-Yamato Steel Co.).

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

Pre-operating and start-up costs of new facilities decreased to $16.8 million in the first half of 2004, compared with $60.2 million in the first half 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.

In the first half 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 36.4% in the first half of 2004 compared with 18.4% in the first half of 2003 and 6.1% for the year 2003, and had an effective tax rate of 36.6% in the second quarter of 2004 compared with 11.2% in the second quarter of 2003. The increase in the effective tax rate is primarily due to the effect of increased pre-tax earnings.

On July 17, 2004, Nucor's wholly owned subsidiary, Nucor Steel Tuscaloosa, Inc., purchased substantially all of the steelmaking assets of Corus Tuscaloosa for a price of approximately $90 million. The facility is a coiled plate mill that manufactures pressure vessel steel coil, discrete plate and cut-to-length plate products. Located in Tuscaloosa, Ala., the mill was built in 1985. In 1996, a melting and casting facility expansion and mill modernization project increased its annual capacity to approximately 800,000 tons.

Outlook—Demand for Nucor’s products continues to be strong due to increases in industrial spending and non-residential construction. Raw material surcharges are increasing in the third quarter following the recent surge in scrap prices. Nucor expects that the third quarter will be stronger than the second quarter and that improving economic conditions and continuing strong steel demand will contribute to estimated earnings of between $3.20 and $3.40 per share in the third quarter of 2004, compared to $.20 per share in the third quarter of 2003. 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 is the largest steel producer 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.