Oct. 20, 2006 — Nucor Corp. announced record consolidated net earnings of $517.6 million on record consolidated net sales of $3.93 billion for the third quarter, and record consolidated net earnings of $1.35 billion on record consolidated net sales of $11.28 billion for the first nine months of 2006.

Third Quarter Results—Consolidated net earnings of $517.6 million ($1.68 per diluted share) reflect a 77% increase compared with $291.9 million ($0.93 per diluted share) earned in the third quarter of 2005, and a 14% increase from the $452.8 million ($1.45 per diluted share) earned in the second quarter of 2006.

Consolidated net sales of $3.93 billion reflect a 30% increase compared with $3.03 billion in the third quarter of 2005, and a 3% increase compared with $3.81 billion in the second quarter of 2006. Average sales price per ton reflect a 23% increase from the third quarter of 2005 and a 7% increase from the second quarter of 2006. Total tons shipped to outside customers were 5,603,000 tons, an increase of 6% over the third quarter of 2005 and a decrease of 4% from the second quarter of 2006.

The average scrap and scrap substitute cost per ton used increased 18% from $217 in the third quarter of 2005 to $257 in the third quarter of 2006, and increased 4% from $247 in the second quarter of 2006. Total energy costs reflect an approximately $4 per ton decrease from the third quarter of 2005, and an approximately $3 per ton increase from the second quarter of 2006.

Nucor incurred a $20.5 million charge to value inventories using the last-in, first-out (LIFO) method of accounting, compared with a credit of $52.0 million in the third quarter of 2005 and a charge of $15.5 million in the second quarter of 2006.

Nine Month Results—consolidated net earnings and sales for the first nine months and the third quarter of 2006. Net earnings through the first nine months of 2006 exceeded 2005's previous record annual earnings. Nucor's consolidated net earnings for the first nine months of 2006 were $1.35 billion ($4.33 per diluted share), an increase of 39% over net earnings of $969.3 million ($3.04 per diluted share) in last year's first nine months.

Consolidated net sales increased 19% to $11.28 billion, compared with $9.49 billion in last year's first nine months. Average sales price per ton increased 7% while total tons shipped to outside customers increased 11% from the first nine months of 2005.

The average scrap and scrap substitute cost per ton used increased 1% from $245 in the first nine months of 2005 to $247 in the first nine months of 2006. Total energy costs increased approximately $1 per ton from the first nine months of 2005 to the first nine months of 2006.

Nucor incurred a $45.0 million charge to value inventories using the last-in, first-out (LIFO) method of accounting, compared with a credit of $148.0 million in the first nine months of 2005.

Segment Results—In the steel mills segment, steel production increased 14% to 17,318,000 tons in the first nine months of 2006 (YTD ‘06), compared with 15,136,000 tons produced in the first nine months of 2005 (YTD ’05). Total steel shipments increased 11% to 17,286,000 tons YTD ‘06, compared with 15,504,000 tons in YTD ’05. Steel shipments to outside customers increased 11% to 15,936,000 tons in YTD ‘06, compared with 14,295,000 tons in YTD ‘05.

In the steel products segment, steel joist production in YTD ‘06 increased to 433,000 tons, compared with 413,000 tons in YTD ‘05. Steel deck sales decreased to 284,000 tons in YTD ‘06, compared with 285,000 tons in YTD ‘05. Cold finished steel sales remained flat at 261,000 tons when compared with the first nine months of 2005.

Other Third Quarter Events—In September 2006, Nucor's Board of Directors declared a supplemental dividend of $0.50 per share in addition to the $0.10 per share base dividend. The total dividend of $0.60 per share is payable on November 10, 2006 to stockholders of record on September 29, 2006. Nucor's dividends paid to stockholders have increased more than nine-fold since 2003: $62 million paid in 2003, $70 million paid in 2004, $210 million paid in 2005, and $580 million to be paid in 2006.

Nucor repurchased approximately 6.3 million shares of its common stock at a cost of approximately $318.3 million under a publicly announced stock repurchase program during the third quarter of 2006, and repurchased approximately 10.1 million shares at a cost of about $515.0 million during the first nine months of 2006. Approximately 15.7 million shares remain authorized for repurchase under the current program. Since the first quarter of 2005, Nucor has repurchased approximately 21.3 million shares of common stock.

In September 2006, Nucor announced an agreement to purchase substantially all of the assets of Verco Manufacturing Co. for a cash purchase price of approximately $180 million. This transaction is expected to close during the fourth quarter of 2006 and is expected to be immediately accretive to earnings. This facility produces steel floor and roof decking in three locations in the western United States. With the addition of the Verco facilities, Nucor's total annual deck capacity will exceed 500,000 tons.

Outlook—Nucor anticipates that earnings for the fourth quarter will be strong, however they will be impacted by lower shipments due to normal seasonal issues and to the current inventory destocking by service center customers. These high inventories are due in part to the unexpected continued high levels of imports in the third quarter. Nucor expects margins to be strong in the fourth quarter—negatively impacted by lower spot market prices for sheet and bars, but benefiting from anticipated lower scrap costs.

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