July 18, 2019 -- Nucor Corporation (NYSE: NUE) today announced consolidated net earnings of $386.5 million, or $1.26 per diluted share, for the second quarter of 2019. By comparison, Nucor reported consolidated net earnings of $501.8 million, or $1.63 per diluted share, for the first quarter of 2019 and $683.2 million, or $2.13 per diluted share, for the second quarter of 2018.

Included in the first quarter of 2019 results was a benefit of $33.7 million, or $0.08 per diluted share, related to the gain on the sale of an equity method investment in the raw materials segment. Included in the second quarter of 2018 results was a benefit of $23.3 million, or $0.06 per diluted share, related to insurance recoveries.

In the first half of 2019, Nucor reported consolidated net earnings of $888.3 million, or $2.88 per diluted share, compared with consolidated net earnings of $1.04 billion, or $3.23 per diluted share, in the first half of last year.

Second Quarter of 2019 Analysis

"Unusually wet weather and aggressive supply chain destocking impacted mill order rates in the first half of 2019. We have seen lower volumes during the first half of this year resulting in a more challenging price environment," said John Ferriola, Nucor's Chairman, Chief Executive Officer and President.

Mr. Ferriola continued, "However, real demand for our products remains strong in key end-use markets. We see healthy conditions in end-use markets that typically account for more than two thirds of our steel shipments. For this reason, we are cautiously optimistic that pricing has bottomed for most products and that volumes should be more closely aligned with real end-use demand in the second half of the year."

Nucor's consolidated net sales decreased 3% to $5.90 billion in the second quarter of 2019 compared with $6.10 billion in the first quarter of 2019 and decreased 9% compared with $6.46 billion in the second quarter of 2018. Average sales price per ton in the second quarter of 2019 decreased 3% compared with the first quarter of 2019 and decreased 2% compared with the second quarter of 2018.

A total of 6,724,000 tons were shipped to outside customers in the second quarter of 2019, a 1% decrease from first quarter of 2019 and a 7% decrease from the second quarter of 2018. Total steel mill shipments in the second quarter of 2019 decreased 3% from the first quarter of 2019 and decreased 10% from the second quarter of 2018. Downstream steel products shipments to outside customers in the second quarter of 2019 increased 2% from the first quarter of 2019 and decreased 4% from the second quarter of 2018.

In the first half of 2019, Nucor's consolidated net sales of $11.99 billion was similar to consolidated net sales of $12.03 billion reported in the first half of 2018. Total tons shipped to outside customers in the first half of 2019 were 13,491,000, a decrease of 5% from the first half of 2018, while the average sales price per ton increased 5%.

During the second quarter of 2019, Nucor repurchased approximately 2.3 million shares of its common stock for an average price of $55.41 per share. Nucor has repurchased approximately 3.5 million shares of its common stock for an average price of $57.25 per share through the first half of 2019. At June 29, 2019, Nucor had approximately 303,157,000 shares outstanding and approximately $1.3 billion available under its share repurchase program.

Third Quarter of 2019 Outlook

The performance of the raw materials segment is expected to decrease in the third quarter of 2019 as compared to the second quarter of 2019 due to further margin compression in the Company's DRI businesses.

The profitability of Nucor's steel products segment is expected to continue to improve during the third quarter of 2019 as compared to the second quarter of 2019. Nonresidential construction market conditions remain strong. In addition, recently implemented efficiency initiatives in rebar fabrication and metal buildings are enhancing performance from those businesses.

We expect the performance of the steel mills segment in the third quarter of 2019 to be lower than this year's second quarter, due primarily to lower prices for flat rolled and plate steel. Prices for several key product lines have only recently reversed the downward trajectory that prevailed during the first half of the year due to weather conditions and service center destocking. We expect service center customers will resume more normal market demand-driven buying patterns during the third quarter of 2019.

About Nucor

Nucor and its affiliates are manufacturers of steel and steel products, with operating facilities in the U.S. and Canada. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; precision castings; steel fasteners; metal building systems; steel grating; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and hot briquetted iron / direct reduced iron; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler. (NUCOR)

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• [Editor:kangmingfei]