June 2009 -- Nucor Corp. posted a net loss of $189.6 million for the first quarter of 2009. By comparison, Nucor earned $409.8 million in the first quarter of 2008 and earned $105.9 million.
Sales fell 47% to $2.65 billion compared with $4.97 billion in the first quarter of 2008 due to a 43% decrease in total tons shipped to outside customers and a 7% decrease in average sales price per ton.
Cost pressures were hard on the company with the average scrap and scrap substitute cost per ton used remained flat at $333 in the first quarters of 2008 and 2009 and decreased 23% from $435 in the fourth quarter of 2008, according to an April 23 earnings statement.
The steel mill utilization rate has decreased to approximately 45% in the first quarter from 92% in last year's first quarter and 48% in the fourth quarter. As a result of this decreased utilization, total energy costs increased approximately $11 per ton from the first quarter of 2008 to the first quarter of 2009 and increased approximately $5 per ton from the fourth quarter of 2008.
The dramatically lower production rates of its mills have further slowed the rate at which its sheet mills are consuming higher cost iron units, in particular pig iron inventories, which were purchased prior to the collapse in both the economy and scrap/pig iron pricing in last year's fourth quarter, the company said.
