Oct. 22, 2009 (PR Newswire) --
CHARLOTTE, N.C., Oct. 22 /PRNewswire-FirstCall/ -- Nucor Corporation (NYSE: NUE) announced today a consolidated net loss of $29.5 million, or $0.10 per diluted share, for the third quarter of 2009, compared to a net loss of $133.3 million, or $0.43 per diluted share, in the second quarter of 2009, an improvement of 78%. The results compare to net income of $734.6 million, or $2.31 per diluted share, in the third quarter of 2008.
In the first nine months of 2009, Nucor reported a consolidated net loss of $352.5 million, or $1.12 per diluted share, compared with net earnings of $1.73 billion, or $5.70 per diluted share, in the first nine months of 2008.
In the third quarter of 2009, Nucor's consolidated net sales increased 26% to $3.12 billion compared with $2.48 billion in the second quarter of 2009 and decreased 58% compared with $7.45 billion in the third quarter of 2008. Average sales price per ton increased 1% from the second quarter of 2009 and decreased 45% from the third quarter of 2008. Total tons shipped to outside customers were 5,114,000 tons in the third quarter of 2009, an increase of 24% over the second quarter of 2009 and a decrease of 24% from the third quarter of 2008.
In the first nine months of 2009, Nucor's consolidated net sales decreased 58% to $8.25 billion, compared with $19.51 billion in last year's first nine months. Average sales price per ton decreased 32% while total tons shipped to outside customers decreased 38% compared to the first nine months of 2008.
The average scrap and scrap substitute cost per ton used in the third quarter of 2009 was $299, a decrease of 4% compared with $312 in the second quarter of 2009 and a decrease of 44% from $533 in the third quarter of 2008. The average scrap and scrap substitute cost per ton used in the first nine months of 2009 decreased 29% to $312 compared to $439 in the first nine months of 2008.
Nucor recorded a credit to value inventories using the last-in, first-out (LIFO) method of accounting of $120 million in the third quarter of 2009, compared with a credit of $125 million in the second quarter of 2009 and a charge of $140 million in the third quarter of 2008. In the first nine months of 2009, the LIFO credit was $350 million compared to a charge of $423 million in the first nine months of 2008.
Total energy costs decreased approximately $9 per ton from the second quarter of 2009 due to lower electricity and natural gas prices combined with the productivity benefits of increased utilization. Total energy costs decreased approximately $8 per ton from the third quarter of 2008 to the third quarter of 2009. During the first nine months of 2009, total energy costs increased $2 per ton compared with the first nine months of 2008.
As expected and as discussed in our guidance, third quarter results include a burden from the accelerated consumption of high-cost pig iron inventories at our sheet mills. These inventories were purchased prior to the collapse in the economy and raw materials pricing in last year's fourth quarter. For the third quarter, the negative impact of the high-cost pig iron inventories was approximately $180 million, or about $0.37 per share after-tax. Through the first nine months of the year, the impact was approximately $420 million, or more than $0.85 per share after-tax. The consumption of the high-cost pig iron inventories was completed by the close of the third quarter.
Pre-operating and start-up costs of new facilities increased from $29.7 million in the third quarter of 2008 to $47.1 million in the third quarter of 2009 and increased from $74.8 million in the first nine months of 2008 to $111.9 million in the first nine months of 2009. In 2009, these costs primarily related to the SBQ mill in Memphis, Tennessee, the Castrip(®) project in Blytheville, Arkansas, the proposed iron-making facility, and the galvanizing line in Decatur, Alabama.
Our liquidity position remains strong with $2.22 billion in cash and cash equivalents and short-term investments and an untapped $1.3 billion revolving credit facility that matures in November 2012.
In September, Nucor's board of directors declared a cash dividend of $0.35 per share payable on November 11, 2009 to stockholders of record on September 30, 2009. This dividend is Nucor's 146th consecutive quarterly cash dividend, a record we expect to continue.
While overall steel mill utilization increased from 46% in the second quarter to 69% in the third quarter, the increase was primarily due to the end of customer destocking. Our view remains that there has been little improvement in real demand and the uncertainty in our economy is still very high. We also continue to believe that real demand is in for a long, slow recovery. The fourth quarter presents its own seasonal issues that are separate of the general economic slowdown due to the holidays and year-end plant shutdowns by some of our customers. While our fourth quarter results will benefit from a significant improvement in raw material costs, our results could be negatively impacted by the potential of lower operating volumes/rates in both sheet and bar products. Customers are currently taking advantage of shortened mill lead times adding to the difficulty of forecasting volumes for the fourth quarter. We will again provide quantitative guidance after the midpoint between our quarterly earnings releases.
Nucor and affiliates are manufacturers of steel products, with operating facilities primarily in the U.S. and Canada.
