Nucor Corporation announced consolidated net earnings of $70.8 million, or $0.22 per diluted share, for the first quarter of 2016.
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By comparison, Nucor reported net earnings of $67.8 million, or $0.21 per diluted share, for the first quarter of 2015 and adjusted net earnings of $144.7 million, or $0.45 per diluted share, for the fourth quarter of 2015.
Fourth quarter of 2015 adjusted net earnings excludes a $153.0 million ($0.47 per diluted share) impairment charge related to company's Duferdofin Nucor S.r.l. joint venture and an $84.1 million ($0.17 per diluted share) impairment charge on assets related to a blast furnace project that will not be utilized in the future.
Including these impairment charges, Nucor's net loss for the fourth quarter of 2015 was $62.0 million, or $0.19 per diluted share.
Nucor's first quarter of 2016 results include a charge of $27.5 million ($0.05 per diluted share) to value inventories using the last-in, first-out (LIFO) method of accounting.
The charge is compared with a credit of $16.5 million ($0.03 per diluted share) in the first quarter of 2015 and a credit of $217.8 million ($0.41 per diluted share) in the fourth quarter of 2015.
The LIFO charge taken in the first quarter of 2016 was above company's quantitative guidance of $15.0 million ($0.03 per diluted share) as recent increases in scrap prices affected company's estimate of expected inventory values at the end of 2016.
Also included in the first quarter of 2016 earnings are out-of-period non-cash gains totaling $13.4 million ($0.04 per diluted share) related to a noncontrolling interest adjustment and to tax adjustments.
Nucor's consolidated net sales decreased 16% to $3.72 billion in the first quarter of 2016 from $4.40 billion in the first quarter of 2015 and increased 7% compared with $3.46 billion in the fourth quarter of 2015.
Average sales price per ton in the first quarter of 2016 decreased 23% from the first quarter of 2015 and decreased 11% from the fourth quarter of 2015.
Total tons shipped to outside customers were 6,148,000 tons in the first quarter of 2016, a 9% increase from the first quarter of 2015 and a 20% increase from the fourth quarter of 2015.
Total first quarter steel mill shipments increased 16% from the first quarter of 2015 and increased 27% from the fourth quarter of 2015. First quarter downstream steel products shipments to outside customers decreased 1% from the first quarter of 2015 and decreased 6% from the fourth quarter of 2015.
The average scrap and scrap substitute cost per ton used during the first quarter of 2016 was $193, a decrease of 40% from $324 in the first quarter of 2015 and a decrease of 12% compared to $219 in the fourth quarter of 2015.
Overall operating rates at company's steel mills increased to 74% in the first quarter of 2016 as compared to 65% in the first quarter of 2015 and 63% in the fourth quarter of 2015.
Total steel mill energy costs in the first quarter of 2016 decreased approximately $7 per ton compared to the first quarter of 2015 and decreased approximately $2 per ton compared to the fourth quarter of 2015.
The decrease from the first quarter of 2015 was due to significantly lower electricity and natural gas unit costs and improved productivity from higher steel production volumes.
The decrease from the fourth quarter of 2015 was due to improved productivity from higher steel production volumes and lower natural gas unit costs.
Our liquidity position remains strong with $2.33 billion in cash and cash equivalents and short-term investments. Subsequent to the end of the first quarter, we amended and extended company's undrawn $1.5 billion line of credit to mature in April 2021.
In February, Nucor's board of directors declared a cash dividend of $0.375 per share payable on May 11, 2016 to stockholders of record on March 31, 2016. This dividend is Nucor's 172nd consecutive quarterly cash dividend, a record we expect to continue. ■