July 24, 2006 — Nucor Corp. announced record consolidated net earnings of $452.8 million on record consolidated net sales of $3.81 billion for the second quarter, and record consolidated net earnings of $831.9 million on record consolidated net sales of $7.35 billion for the first half of 2006. Net earnings per share and average shares outstanding for all periods reflect a two-for-one stock split effective in May 2006.

Second Quarter Results—Consolidated net earnings of $452.8 million ($1.45 per diluted share) reflect an increase of 40% over $322.7 million ($1.01 per diluted share) earned in the second quarter of 2005 and an increase of 19% from the $379.2 million ($1.21 per diluted share) earned in the first quarter of 2006. Consolidated net sales increased 21% to $3.81 billion, compared with $3.15 billion in the second quarter of 2005 and increased 7% compared with $3.55 billion in the first quarter of 2006.

Average sales price per ton increased 5% from the second quarter of 2005 and increased 4% from the first quarter of 2006. Total tons shipped to outside customers were a record 5,819,000 tons, an increase of 15% over the second quarter of 2005 and an increase of 4% over the first quarter of 2006.

The average scrap and scrap substitute cost per ton was $247, flat compared with $246 in the second quarter of 2005 and an increase of 4% compared with $237 in the first quarter of 2006. Total energy costs decreased approximately $1 per ton from the second quarter of 2005, and decreased $4 per ton from the first quarter of 2006.

Nucor incurred a charge to value inventories using the last-in, first-out (LIFO) method of accounting of $15.5 million, compared with a credit of $69.9 million in the second quarter of 2005.

First Half Results—Consolidated net earnings of $831.9 million ($2.65 per diluted share) reflect an increase of 23% over net earnings of $677.4 million ($2.11 per diluted share) in last year's first half. Consolidated net sales increased 14% to $7.35 billion, compared with $6.47 billion in last year's first half. Average sales price per ton was flat while total tons shipped to outside customers increased 14% from the first half of 2005.

The average scrap and scrap substitute cost per ton was $242, a decrease of 7% compared with $259 in the first half of 2005. Total energy costs increased approximately $3 per ton from the first half of 2005.

Nucor incurred a charge to value inventories using the last-in, first-out (LIFO) method of accounting of $24.5 million in the first half of 2006, compared with a credit of $96.0 million in the first half of 2005.

Segments—In the steel mills segment, steel production increased 15% to 11,519,000 tons in the first half of 2006, compared with 10,051,000 tons produced in the first half of 2005. Total steel shipments increased 14% to 11,616,000 tons in the first half of 2006, compared with 10,146,000 tons in last year's first half. Steel shipments to outside customers increased 14% to 10,713,000 tons in the first half of 2006, compared with 9,381,000 tons in last year's first half.

In the steel products segment, steel joist production during the first half of 2006 increased to 281,000 tons, compared with 262,000 tons in the first half of 2005. Steel deck sales decreased to 179,000 tons in the first half of 2006, compared with 181,000 tons in last year's first half. Cold finished steel sales increased to 187,000 tons, compared with 176,000 tons in the first half of 2005.

In May 2006, Nucor's wholly owned subsidiary, Nucor Steel Connecticut, Inc., purchased substantially all of the assets of Connecticut Steel Corp. for a cash purchase price of approximately $43.9 million. Located in Wallingford, Conn., this bar products mill has an annual capacity of approximately 300,000 tons of wire rod and rebar, and approximately 85,000 tons of wire mesh fabrication and structural mesh fabrication.

New Construction—In May 2006, Nucor announced plans to construct its fourth facility to produce metal building systems and components. The facility will be located in the western United States and will have an annual capacity of approximately 45,000 tons. It is expected to cost approximately $27 million and to employ more than 200 people.

In June 2006, Nucor announced plans to construct its fourth sheet steel galvanizing facility, which will be located at Nucor's sheet mill in Decatur, Ala. Annual capacity will be approximately 500,000 tons, and the facility will have the ability to produce 72-inch wide sheet. Total cost is estimated to be approximately $150 million.

In July 2006, Nucor announced plans to construct a steel mill in the southern United States that will produce special bar quality products. The facility will have a capacity of approximately 850,000 tons and will produce high quality carbon and alloy rounds and round cornered squares from 3- to 9-inch for the automotive, heavy equipment and service center markets. Several locations are currently under consideration.

For all three recently announced projects, construction is expected to begin after satisfactory resolution of site location, regulatory approvals, tax matters and various contracts.

Outlook—Nucor says that current orders and backlogs are healthy across all product lines. The company expects the strong business conditions experienced in the second quarter to continue through the third quarter and well into the fourth quarter. Nucor expects that earnings for the third quarter will continue to be very strong.

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.