Nucor Corporation announced consolidated net earnings of $110.3 million for the third quarter of 2012. By comparison, Nucor reported net earnings of $112.3 million in the second quarter of 2012 and net earnings of $181.5 million in the third quarter of 2011. Third quarter of 2012 results include non-cash inventory related purchase accounting charges of approximately $28.2 million associated with our acquisition of Skyline Steel LLC, which occurred late in the second quarter of 2012. Third quarter of 2012 results were also negatively impacted by a loss on the sale of the assets of Nucor Wire Products Pennsylvania, Inc. of $17.6 million.

In the first nine months of 2012, Nucor reported consolidated net earnings of $367.7 million compared with consolidated net earnings of $641.1 million in the first nine months of last year. The year-to-date of impact of Skyline inventory related purchase accounting adjustments was $36.8 million. It expects such charges to be much lower in the fourth quarter.

Nucor recorded a credit to value inventories using the last-in, first-out (LIFO) method of accounting of $84.0 million in the third quarter of 2012, compared with a credit of $14.5 million in the second quarter of 2012 and a charge of $28.0 million in the third quarter of 2011. The LIFO credit in the first nine months of 2012 was $84.0 million compared with a charge of $91.0 million in the first nine months of 2011.

Nucor’s consolidated net sales decreased 6% to $4.80 billion in the third quarter of 2012 compared with $5.10 billion in the second quarter of 2012 and decreased 9% compared with $5.25 billion in the third quarter of 2011. Average sales price per ton decreased 3% from the second quarter of 2012 and decreased 8% from the third quarter of 2011. Total tons shipped to outside customers were 5,768,000 tons in the third quarter of 2012, a 3% decrease from the second quarter of 2012 and a slight decrease from the third quarter of 2011. Total third quarter steel mill shipments were down 3% from the second quarter of 2012 and decreased 2% from the third quarter of 2011. Third quarter downstream steel products shipments to outside customers increased 1% over the second quarter of 2012 and 4% over the third quarter of 2011.

In the first nine months of 2012, Nucor’s consolidated net sales decreased 1% to $14.98 billion, compared with $15.19 billion in last year’s first nine months. Total tons shipped to outside customers increased 1% over the first nine months of 2011, while average sales price per ton decreased 3%.

The average scrap and scrap substitute cost per ton used in the third quarter of 2012 was $380, a decrease of 11% from $427 in the second quarter of 2012 and a decrease of 15% from $449 in the third quarter of 2011. The average scrap and scrap substitute cost per ton used in the first nine months of 2012 was $418, a decrease of 5% from $439 in the first nine months of 2011.

Overall operating rates at Nucor’s steel mills in the third quarter (71%) were down from the second quarter (76%) and from last year’s third quarter (74%). Year-to-date steel mill utilization was flat (75%) compared with the prior year period.

Total energy costs increased approximately $5 per ton over the second quarter of 2012 primarily due to higher electricity and natural gas unit costs. Energy costs decreased approximately $2 per ton from the third quarter of 2011 and decreased $3 per ton from the first nine months of 2011 primarily due to lower natural gas unit costs.

Construction is going well on the company’s 2,500,000-ton DRI facility in Louisiana. The majority of the equipment will arrive in 2012, and it is on schedule for completion of construction and beginning of start-up in mid-2013.

The company’s liquidity position remains strong with $2.54 billion in cash and cash equivalents, short-term investments, and restricted cash and investments. Its $1.5 billion revolving credit facility that matures in December 2016 remains unused.

Nucor’s third quarter results reflect a continuing trend of reduced operating profits at its steel mills, most significantly in sheet and plate. Lower steel mill margins are primarily the result of very high import levels, which began rising in 2011. According to U.S. Census Bureau reports, 2012 steel products imports are on pace to reach 27.7 million short tons in 2012. This represents an increase of 21% from 2011 imports of 22.8 million tons and is 43% higher than 2010 import levels of 19.3 million tons. In addition, U.S. sheet steel markets have been negatively impacted by new domestic supply that began ramping up production in 2011.

Nucor currently expects to see some further reduction in earnings exclusive of one-time charges for the fourth quarter of 2012. In addition to high import levels and excess domestic sheet supply, slowing economic growth both domestically and globally is expected to be a negative factor through the end of the year. Volatility in scrap prices, together with a combination of political and economic uncertainty in global markets, is impacting steel buyer confidence and therefore supply-chain stocking levels. The strongest end markets continue to be manufactured goods including automotive, energy and heavy equipment. The construction market continues to be very challenging.